an oil pipe near oilfields

The Sudanese Minister of Finance says they will not review the agreement to adjust the cost of transporting South Sudan’s crude oil.

According to the agreement, South Sudan pays 24 US dollars per barrel to Sudan, for transporting its crude oil from Paloch, in Eastern Nile, and for post-independence financial arrangements.

But the price of crude has drastically fallen in the last few months, with a barrel of London Brent now selling at about 28 US dollars. South Sudan’s crude sells at a much lower price of about $20 per barrel.

The government recently said it was engaging the Khartoum government in discussions, to find solutions to the matter.

However, Mr. Badr El-Dein Mahmoud told the press in Khartoum that the transit fees of South Sudan crude oil is guided by the September 2013 agreement between the two countries.

He says his government adheres to the agreement, and the agreement can neither be negotiated nor amended.

However, the Sudan embassy in Juba says it did not receive any official communication about the issue.

“We are shocked by the appeal and the request of the South Sudan government for the amendment of the crude oil transit fees and financial arrangements,” said Majdi Ahmed Mofadil, Deputy Head of Mission.

The government recently threatened to shut down oil flow through Sudan.

On Tuesday, the spokesperson of the ministry of foreign affairs said the government has submitted a proposal on how to reduce the transit fees and the amount being paid to Sudan after independence.