Sudan receives $183 million from oil companies in transit fees

August 3, 2014 (KHARTOUM) – The Sudanese government announced today that the central bank received $183 million from oil companies in transit fees per previous agreements.

South Sudan oil exports have to go through its northern neighbour (Photo: Reuters)

On June 28th, Khartoum and oil companies operating in South Sudan’s oilfields (blocks number 3 and 7) signed a framework agreement which entitles Sudan to receive $366 million annually.

These oil companies agreed to pay $4 as transit fees instead of $1 besides agreeing to raise the barrel’s tariff from $5.5 to $19.8 for three years beginning June 2013.

Sudan’s oil minister, Makkawi Mohamed Awad was quoted by state news agency (SUNA) today as saying that China National Petroleum Corporation (CNPC) and Malaysian oil and gas company (Petronas) were the two companies that disbursed the money in accordance with production shares.

He praised their commitment to the agreement and timeframe stipulated saying it will help boost Sudan’s Forex reserves.

The deal lasts until the end of 2017, with Sudanese officials saying the government will own 95% of the pipeline after that.

Oil used to be the main source for Sudan’s budget until southern secession in July 2011, when Khartoum lost 75 percent of its oil production and its status as oil exporter overnight.

(ST)