Sudan and South Sudan on Monday signed an agreement that will see the current oil deal and other related economic arrangements extended until March 2022.
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.
Juba also agreed to pay the Transitional Financial Assistance (TFA) to the average of the agreed oil transportation fees.
The agreement, SUNA reported, says South Sudan pays $26 for each barrel of oil that passes through Sudan's pipeline operator, Petrolines for Crude Oil Ltd belonging to the Greater Nile Petroleum Operating Company and $24.1 for each oil barrel transported through Bashayer Pipeline Company for Petrodar Operating Company.
South Sudan, the deal says, should also supply Khartoum Refinery and Um-Dabakir station with 28,000 barrels of crude oil daily.
Sudan's Minister of Energy and Mining, Adil Ali Ibrahim and South Sudan's Oil minister Awou Daniel Chuang signed the agreement.
"The agreement represents a great step to boost the cooperation between the two countries in the oil and gas sector through a spirit of fraternity and cooperation for the interest of the two countries," said Ibrahim.
He added, “The agreement would also enhance the cooperation to increase the oil production in South Sudan and establish greater economic projects for the benefit of the two countries.”
Minister Chuang, on the other hand, said the extension of the oil agreement showed the commitment of both nations to the oil sector.
Under the terms of the Cooperation Agreement signed between Juba and Khartoum in 2012, South Sudan pays Sudan an overall $24 as transit fees charge per barrel of crude as well as transitional financial agreement amounting to $3 billion for a period of three years.
South Sudan, where oil revenues make up nearly 98 per cent of the budget, has been reeling an under economic crisis due to civil war.
The young nation currently produces 135,000 barrels of crude oil per day.
South Sudan split from Khartoum in 2011 after decades of a bloody civil war.
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