Sudan and South Sudan strike oil exportation deal

ADDIS ABABA, Ethiopia (AP) ? Landlocked South Sudan says it has a struck a deal with Sudan over the exportation of oil through Sudan's pipelines.

In a statement Saturday South Sudan's government said that it will pay approximately $9.48 a barrel to transport its fuel through Sudan's pipelines.

South Sudan says the agreement on pipeline transportation fees will last for three and a half years after which the countries may negotiate lower rates or South Sudan, which expects to have constructed a pipeline through Kenya, will stop using Sudan's pipeline.

A row over the sharing of the two countries' once-unified oil industry prompted South Sudan to shut down its oil production. Oil also sparked a dangerous military confrontation between the two sides in April, when South Sudan captured the disputed town of Heglig, which is responsible for more than half of Sudan's oil production.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-08-04-South%20Sudan-Sudan-Oil/id-b90bc9b45f9a43199cd93e074bd49f8a

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