South Sudan urges Sudan to reduce oil transit fees

Copyright : APA

South Sudan government has decried the high transportation fees it pays to Khartoum to export its crude oil, calling on Khartoum to reduce the transit fees due to the sharp decline of the international oil prices.South Sudan minister of foreign affairs Barnaba Marial Benjamin told reporters that his government has asked Khartoum to cut the lease of Sudanese oil transportation facilities.

He confirmed that his government request was prompted by the fall in oil prices on the international market, adding that a request to this effect was presented to the Sudanese Government.

“Oil prices have dropped ..They are no longer like in the past ..We have to see how we can share the oil revenue under these conditions.. And if we suppose that the oil price can go down to 20 dollars, at that time there would be nothing to share,” said the South Sudanese top diplomat.

He said the oil ministers in Khartoum and Juba were discussing the matter, but no decision has been reached so far.

In August 2013 South Sudan agreed to pay to Khartoum $9.10 for the oil produced in Upper Nile state and $11 for that of Unity state which produces some 20% of South Sudan’s oil.

Also Juba agreed to pay the Transitional Financial Assistance (TFA) to the average of the agreed oil transportation fees.

The $25 per barrel of oil being paid was meant to expedite the repayment of a $3 billion compensatory package they agreed to pay Sudan.