South Sudan has asked immediate neighbor Khartoum to lift the lease of crude oil transportation facilities and cost due to danger posted by current market prices.
South Sudanese Foreign minister, Barnaba Marial Benjamin made the appeal in an interview with Ashrooq television in which he noted that the country’s proceeds from oil had narrowed due to the fall in price.
Benjamin further observed that shares from the proceed from both countries ought to be revised.
“Oil prices have dropped ..They are no longer like in the past ..We have to see how we can share the oil revenue under these conditions.. And if we suppose that the oil price can go down to 20 dollars, at that time there would be nothing to share,’’ said South Sudanese Foreign Minister.
He said the oil ministers in Khartoum and Juba were discussing the matter, but no decision has been reached so far.
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. Also Juba agreed to pay the Transitional Financial Assistance (TFA) to the average of the agreed oil transportation fees.
In January 2015, South Sudan’s petroleum minister, Stephen Dhieu Dau said his country will consider whether to continue paying Sudan $25 per barrel of oil or push for reduction.
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.
Credit: Sudan Tribune