South Sudan is getting ‘nothing’ from the oil proceeds, an economist has said.

This statement comes amid the drop of crude oil price.

On Sunday, the price of crude oil fell below $30 per barrel in the world market, the lowest since 2003.

Brent crude, used as an international benchmark, dropped to about $28 per barrel, before recovering slightly to trade at $29.

South Sudan relies on oil to meet up to 80% of its budgetary obligations.

But it pays about $24 from the sale of each barrel of crude to Sudan to cover for financial arrangements after the independence of South Sudan.

South Sudan produces 160,000 barrels per day. According to officials, South Sudan oil sells at below $30 due to its quality.

“If…..Khartoum gets $24.1, that means we remain with nothing,” said Dr Lual A Deng, Former Minister of Petroleum and Managing Director for the Ebony Centre.

At the time of the agreement in 2012, a barrel of crude oil was selling at about $100.

Dr Lual says South Sudan should have agreed on percentages with Sudan instead of fixing the amount they receive per barrel.

“The reading is alarming because basically we are at a losing end simply because of inappropriately negotiated fee and the transitional financial arrangement, which should have been actually assistance, but we gave in to Khartoum and call it arrangement,” Dr Lual added.

“If it was assistance, then you can stop assistance anytime.”

The continuous drop in oil prices comes as the west lifts sanctions on Iran.

Dr Lual says the lifting of sanctions means more barrels of oil per day could be supplied to the market.

Full interview (audio) here: https://www.eyeradio.org/sudan-loses-oil-proceeds/