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Juba, Khartoum start renegotiation of oil transit fee

Author : | Published: Wednesday, February 3, 2016

Sudan and South Sudan have started negotiations on reducing the oil transit fees.

The Sudanese Minister of Petroleum and Gas, Mohamed Zaid Awed, is now in Juba for talks with his South Sudanese counterpart, Stephen Dhieu Dau.

In 2012, both sides agreed that Sudan will be receiving about 24 US dollars per barrel for transporting South Sudan’s oil, and to cover the economic gap after separation in 2011.

At the time, a barrel of crude was selling at more than 100 US dollars, but it has dropped now to about 20 US dollars.

The South Sudanese government said the country had not been benefitting from the sales and called for the renegotiation of the deal.

Mr Mohamed’s visit comes a week after Sudanese President Omar al-Bashir issued a directive to review the transit fees.

He is leading a delegation of senior government officials, who have started meeting their South Sudanese counterparts.

“The main agenda is now, they are discussing tariff for transportation of oil for South Sudan through Sudanese pipeline to Port Sudan,” Eye Radio’s Mayen Deng Athuai reports from the meeting venue.

“Other agenda also is about the production to start in Tharjas oil field … and the other issue is about Sudan to supply south Sudan with fuel” he says.

The two sides are still in discussion all the level of technical groups.

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