This archive report was first published on 26 December 2019.
On December 26, 2019, Sudan and South Sudan signed an agreement extending their oil deal until March 2022, as confirmed by Sudan's state news agency Suna.
The deal, signed in Khartoum, stipulates that South Sudan pays $26 for each oil barrel passing through Petrolines for Crude Oil Ltd and $24.1 for each oil barrel transported through Bashayer Pipeline Company.
Under the agreement, South Sudan will supply Khartoum refinery with 28,000 barrels per day.
South Sudan's Minister of Petroleum, Daniel Awou Chuang, described the extension as mutually beneficial to both countries, saying, 'As we move on, we know that South Sudan cannot export the crude oil except through Sudan because they have the facilities for that, and also we know Sudan relies on South Sudan in regards to energy facilities for power generation and refinery. This kind of relationship should continue as we move on and that’s why the extension is extending the time beyond what was agreed, and of course we know it is not going to end there.'
The Sudanese Minister of Energy and Mining, Eng Adel Ali Ibrahim, hailed the signing as a spirit of fraternity and cooperation, saying, 'This agreement has expressed the real brotherhood and friendly relationship between the two countries. As we agreed before at high government levels to support and strengthen relationship between the two countries, based on mutual interest and based on real brotherhood and real neighbors and as one nation two peoples.'
The oil deal was first signed in 2012 and was previously set to expire on December 31, 2019. Sudan lost two-thirds of its oil revenues after the split of South Sudan in 2011, but transportation of South Sudan's oil through Sudan's pipelines provides revenues to boost Sudan's economy.
