Africa: Juba and Khartoum Begin Oil Fee Negotiations

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South Sudan and its northern neighbor have started negotiations on provisions of the 2012 Cooperation Agreement, focusing on crude oil passing through Sudanese territory. Sudan's petroleum minister, Mekkawi Mohamed Awad and other officials are in Juba discussing the status of the oil deal signed between the two countries.

South Sudan's Petroleum Minister, Stephen Dhieu Dau said on Tuesday (March 3) "We will be talking of the continuation and in particular the consultation on how to implement and promote the Cooperation Agreement signed between the two countries in September 2012."

Juba pays Khartoum $25 per barrel for oil transported through the latter's territory, and in January, he said South Sudan might push for a reduction following the global fall in oil prices which has badly affected South Sudan's largely oil-dependent economy.

He noted that 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 following South Sudan's cessation in July 2011. South Sudan relies on oil to fund well over 90% its budget.

It received $3.376 billion in oil revenue in 2014, however of that, South Sudan paid $884 million to Khartoum, $781 million for repayment of loans and retained $1.711 billion as a net figure for the Government.

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