The government of Sudan has promised to reduce the cost of transporting South Sudan’s crude oil to the export terminal in Port Sudan, an official has said.
Sudan has been taking $24 per barrel since 2012 for transporting the oil and for financial compensation for the independence of South Sudan.
But the government says the fees have become too expensive for South Sudan to pay due to the sharp decline of oil production since last year.
The Spokesperson of the Ministry of Foreign Affairs, Amb Mawien Makol, told Eye Radio that the two governments are currently engaged in discussions on the matter.
“We’re building bilateral relations with them; they promised that this is true [the cut],” said Amb Makol. “We will work that out soon in our technical meetings.”
Globally, oil prices have drastically dropped since mid-last year, with petroleum exporting countries calling the situation an emergency.
According to reports, the price of a barrel of crude has dropped from to more than $60 per barrel to $31 this year.