Sudan earns $236 million from South Sudan oil fees

Sudan earns $236 million from South Sudan oil fees
Above file photo: Sudan Oil Minister Awad Al Jazz speaks during a news conference June 14, 2013, after coming back from the Diffra Oilfield where the oil pipeline which runs through it to the Heglig processing facility was being repeaired to restore the flow of oil.

KHARTOUM - Sudan earned more than $230 million (S$294 million) in fees for the export of South Sudanese oil this year, official media reported on Sunday, days before a Khartoum deadline to shut the pipelines.

"The government of South Sudan sent the fees for oil transportation to the Sudan Central Bank," the official SUNA news agency quoted the bank's assistant governor, Azhari Al-Tayeb Al-Faki, as saying.

The documented amount is $236 million (S$301 million), SUNA said.

That figure covers fees for transporting South Sudanese oil to the Port Sudan export terminal, as well a package to compensate Khartoum for the loss of oil when South Sudan separated, SUNA said.

The South became independent two years ago, taking with it about 75 percent of united Sudan's oil production.

Oil refineries and export pipelines stayed under Sudan's jurisdiction but the two sides could not agree on how much the South should pay for using that infrastructure.

South Sudan's government in Juba halted oil production early last year, accusing Khartoum of theft, but pumping resumed in April after relations between the two sides appeared to be improving.

In June, Sudan accused the South of backing rebels on Sudanese soil and abruptly told oil companies they had 60 days to stop transporting the crude.

The deadline has been extended to September 6 while oil continues moving through the pipelines for export.

The fees due to Khartoum, and the export revenues for the South, are potentially worth billions of dollars to both impoverished economies.

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