- Title: ETHIOPIA: Sudan and South Sudan reach agreement on oil exports
- Date: 4th August 2012
- Summary: ADDIS ABABA, ETHIOPIA (AUGUST 4, 2012) (REUTERS) AFRICAN UNION PEACE AND SECURITY COUNCIL COMMISSIONER RAMTANE LAMAMRA TALKING TO A DIPLOMAT VARIOUS OF DIPLOMATS READING DOCUMENTS (SOUNDBITE) (English) HEAD OF THE AU HIGH LEVEL IMPLEMENTATION PANEL (AUHIP), THABO MBEKI, SAYING: "The parties have agreed on all the financial arrangements regarding oil. So that is done." AFRICAN UNION FLAG (SOUNDBITE) (English) HEAD OF THE AU HIGH LEVEL IMPLEMENTATION PANEL (AUHIP), THABO MBEKI, SAYING: "All of the matters and the issues that are outstanding were charges for transportation, processing, transit, all of that. They have agreed on all of these things. So what will remain, is then of course, given that was an agreement, is then to discuss when the oil companies should be asked for the resumption of production and export" SUDANESE MINISTER OF DEFENCE SHAKING THE SHOULDERS OF THE SUDANESE MINISTER OF CABINET VARIOUS OF THE SUDANESE NEGOTIATION TEAM IN A HOTEL LOBBY AFTER THE TALKS
- Embargoed: 19th August 2012 13:00
- Location: Ethiopia
- Country: Ethiopia
- Topics: International Relations,Economy,Politics,Energy
- Reuters ID: LVACCS15FW9CD9XMLBEH04EQF4Y3
- Story Text: Africa Union says Sudan and South Sudan have reached an agreement to end disputes on oil payments that have brought the two countries to the brink of war.
Sudan and South Sudan have agreed to end a dispute on oil revenues and will discuss when to resume southern oil exports through the north, a mediator from the African Union (AU) said on Saturday (August 4).
Landlocked South Sudan shut down oil production in January after failing to agree with Sudan on how much it should pay to export its oil through northern pipelines.
Former South African President and AU mediator Thabo Mbeki told reporters the two sides would now sit down to finalise details.
"The parties have agreed on all the financial arrangements regarding oil. So that is done," said Mbeki.
The two sides had been under pressure to reach an agreement by August 2 or face sanctions from the United Nations.
"All of the matters and the issues that are outstanding were charges for transportation, processing, transit, all of that. They have agreed on all of these things. So what will remain, is then of course, given that was an agreement, is then to discuss when the oil companies should be asked for the resumption of production and export," Mbeki said.
He gave no details and there was no immediate confirmation from the African arch-foes, who came close to war in April when border fighting escalated in the worst violence since South Sudan became independent a year ago under a 2005 agreement to end decades of civil war.
If confirmed, an oil deal would mark a big step forward in ending a long list of conflicts left over from the duo's messy divorce as oil is the lifeline for both.
The neighbours, which share a deep mistrust and have often not implemented previous arrangements, will still have to resolve the thorny issue of marking their disputed border.
Landlocked South Sudan threw both economies into turmoil when it shut down in January its output of 350,000 barrels a day after failing to agree on a transit fee with Sudan, which started seizing oil to compensate for what it called unpaid fees.
Oil industry sources have said restarting oil production could take six months or longer as the pipelines have been filled with water to avoid gelling and some wells were not closed properly in a rush.
Mbeki's comments came as a surprise after the South's top negotiator Pagan Amum had earlier accused Sudan of demanding a high oil fee. Both delegations had also hours earlier broken off talks without a comprehensive deal after the U.N. Security Council deadline expired.
Mbeki said both sides now had time to settle the key security issue and other conflicts by September 22.
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