Sudan, S. Sudan boosting economies through oil operations' resumption

(MENAFN - Kuwait News Agency (KUNA)) By Mohammad Abdulaziz

KHARTOUM, Oct 28 (KUNA) -- After suspending operations in 2013, the resumption of oil production in South Sudan last September represented a new chance for economic prosperity for both South Sudan and Sudan.

An agreement was signed in which companies from both countries pay a transportation fee of USD 14 for a barrel of oil. South Sudan will retroactively pay the sum piling up since 2011. Sudan indicated that six oil refiners in South Sudan would produce around 100,000 barrels per day (bpd). Reflecting Khartoum's perspective on the issue, oil expert Dr. Mohammad Al-Nayer revealed that the resumption of oil production in South Sudan would bring around USD three billion in revenues for Sudan because of the agreement signed between the two sides. This fact will result in a relative stability in the exchange rate of the Sudanese Pound and will reduce commercial deficit by 75 percent after it reached USD 1.4 billion last year, said the expert.

Dr. Al-Nayer added that Khartoum would also be receiving around USD 25 per barrel in fees that Juba will have to pay oil operations crossing Sudanese territories. Debt for crude oil crossing from South Sudan through Sudanese territories will reach over USD one billion in addition to USD five billion for debt as a result of separation from the Sudanese motherland.

Juba had paid around USD 2.1 billion through production of oil. On the Juba perspective regarding the issue, Journalist Al-Muthana Abdulqader predicted that production from South Sudan would increase in three years by 357,000 bpd. The increase in production will have a positive effect on trade between the two countries, said Abdulqader who indicated that the civil war in South Sudan had a devastating impact on trade between Juba and Khartoum, which reached amounted to USD one billion annually. Civil war in South Sudan had decreased production from 350,000 bpd to USD 130 bpd. (end) mmm.gta

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