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Sudan, South Sudan agree on oil and other arrangements

December 24 - 2019 KHARTOUM
Oil well in South Kordofan (File photo: RD)
Oil well in South Kordofan (File photo: RD)

On Monday, Sudan and South Sudan signed the extension of the agreement on oil and related economic arrangements until March 2022.

They approved the transit, processing, and the sovereign fees regarding South Sudan State’s crude oil that has been transported through Sudan by Petrolines for Crude Oil (PETCO) at $26, and the crude oil that has been transported through the Bashayer Pipeline Company (BAPCO) pipeline at $24.1.

They also approved the supply of Khartoum Refinery and Um Dabakir power plant in Kosti, near the Sudan-South Sudan border to receive 28,000 barrels of South Sudan’s crude oil per day; 14,000 for each station. They also agreed on the payments of the economic arrangements.

Adil Ibrahim, Sudan’s Minister of Energy and Mining stated that the agreement is a major step to advance cooperation between the two countries in the oil and gas sector. “It is also a great step for cooperation to increase production in South Sudan as well as it helps to develop productive economic projects for the benefit of both countries.”

South Sudanese Minister of Petroleum, Awow Daniel Chuang, expressed his happiness at the extension of the agreement and the commitment of the two countries to the oil cooperation agreements. He stressed that “we are ready for further cooperation to pump back all fields in South Sudan”.


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