| Sudan, S. Sudan reach deal on oil transit fees |
ADDIS ABABA Sudan and South Sudan have reached a deal on oil transit fees, but Khartoum said it would be implemented only after the issue of border security had been resolved, dampening hopes of a quick resumption of southern oil exports through the north.
The oil agreement, announced on Saturday, was a big step towards ending hostilities between the neighbours, which came close to war in April when fighting worsened along their shared border, created when the south seceded in July last year.
The two sides, deeply mistrustful of each other, have often not implemented previous agreements and still need to mark their 1,800 kilometre border and resolve charges both have made of supporting rebels in the other’s territory.
The UN Security Council had given the African neighbours until Thursday to resolve all conflicts left over from South Sudan’s secession a year ago under a 2005 peace agreement.
US President Barack Obama welcomed the deal that helped resolve a dispute that nearly brought the rivals to war earlier this year.
“This agreement opens the door to a future of greater prosperity for the people of both countries,” Obama said in a statement released by the White House.
Landlocked South Sudan threw both economies into turmoil when it shut down its output of 350,000 barrels a day in January after failing to agree on a transit fee with Sudan, which started seizing oil to make up for what it called unpaid fees.
African Union mediator Thabo Mbeki said the neighbours had now agreed on how much South Sudan should pay to export its oil through northern pipelines. He gave no details.
“It’s an (oil) agreement about all of the matters. The issues that were outstanding were charges for transportation, for processing, transit,” Mbeki, the former South African president, told reporters.
“What will remain (now)...is to then discuss the steps as to when the oil companies should be asked to prepare for the resumption of production and export,” Mbeki said.
He gave no time frame, saying only the parties had until September 22 to resolve border security and other conflicts.
Sudan confirmed an oil deal had been reached but reiterated that security talks needed to resume after the Muslim fasting month of Ramadan ended at the end of August, the state news agency Suna reported.
“Both sides reached understandings regarding oil which are considered acceptable... (but) the (oil) agreement does not fulfil the ambitions of both sides,” Sudanese delegation spokesman Mutrif Siddig told Suna. “Its implementation will start after understandings on security issues.”
Oil industry sources have said restarting oil production could take six months or longer as the pipelines have been filled with water to avoid gelling.
Agencies
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