South Sudan to pay US$3 million compensation to Sudan

South Sudan and Sudan oil agreementSouth Sudan and Sudan have reached an agreement regarding the exportation and payment of oil between the recently-separated states


The two nations have agreed upon a 42-month deal, which dictates that South Sudan will pay US$9.48 per barrel in order to use one of Sudan’s crude oil pipelines, according to The Associated Press.

Spokesperson for the government delegation held in Addis Ababa, Mutrif Sidiq, commented, "The deal is accepted by both sides. Even though it falls below the expectations of both sides, it constitutes a middle ground."

In January this year South Sudan, believing that its northern neighbour had stolen oil, cut Sudan’s access to southern oil production.  As compensation for the capital consequently lost, South Sudan has also agreed to make a US$3mn one-off payment.

The newly-independent republic, however, remains positive about the final decision.

South Sudan chief negotiator Pagan Amum said, "The government of South Sudan has succeeded to protect the resources of its people."

As one of the first deals to come from the on-going negotiations, it has attracted a lot of attention from the international community.

US President Barack Obama commented, “This agreement opens the door to a future of greater prosperity for the people of both countries.

“I encourage the parties to build on the momentum created by these breakthroughs to resolve remaining border and security issues,” he added.

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