Sudan receives $24 million from South Sudan in oil transit fees
Tuesday, January 22, 2019
Sudan receives $24 million from South Sudan in oil transit fees

Sudan Tribune

Sudan’s Minister of Oil and Gas Azhari Abdel-Gadir said his country has received $24 million in fees from the export of about 1,200,000 barrels of South Sudan oil.

Sudan, which also pumps the South Sudanese oil production until the Red Sea for exportation to the international market, receives between $9 to 11 per barrel of oil.

The South Sudanese oil is currently sold for $61 per barrel.

On Monday 21/1/2019, South Sudan Minister of Petroleum, Ezekiel Lol Gatkuoth accompanied by Abdel-Gadir has attended the launch ceremony of production of the Unity oil fields by pumping 15,000 barrels a day.

The Sudanese Minister said the resumption of oil production is considered an immediate result of the peace agreement, pointing out that production at Thar Jas and Fulluj oilfields would resume soon.

He added the cooperation between the two countries in the oil sector is based upon the eternal social and humanitarian relations, saying oil revenues contribute to achieving stability in both nations.

For his part, Gatkuoth said the rehabilitation of Thar Jas oilfield has started, expecting a resumption of production in May.

He called to maintain the positive spirit of cooperation that led to the resumption of South Sudan oil production and exportation through Sudan.

Last July, Khartoum and Juba agreed to repair the damaged oil wells and to resume oil production in several oil fields stopped since several years due to the nearly-five-year armed conflict in the country.

South Sudan heavily relies on oil income to fund up to 98% of its budget. Also, it relies on the Sudanese pipeline to export its oil production through the Red Sea.

In return, the transit and processing fees South Sudan pays to Sudan to transport its crude oil constitute an important revenue stream for Sudan.

South Sudan became the world’s newest nation after declaring independence from Sudan in 2011.

However, in 2013 the country was plunged into civil war killing tens of thousands of people and displacing millions.