Sudan, South Sudan reach deal on oil before adjourning final phase of negotiations

ADDIS ABABA, Aug. 4 (Xinhua) -- Sudan and South Sudan have reached an oil agreement before adjourning to around Aug. 22 for the final phase of negotiations on outstanding issues, Thabo Mbeki, African Union (AU) Chief Mediator, told reporters on Saturday in Addis Ababa, Ethiopia.

Concluding their latest round of negotiations the two Sudans, the parties agreed with regard to financial arrangement that relate to the export of oil from South Sudan through Sudan to Port Sudan, said Mbeki, former president of South Africa.

"This is one of the major questions, which has been in discussion between the two parties for some time; they have concluded an agreement on this. As the consequence of which, steps will be taken to get the oil-producing companies to work so that oil-production from South Sudan can resume," said Mbeki.

Indicating that it has reached the oil deal with Sudan, South Sudan has announced in a press release that it has secured low pipeline fees. South Sudan said that it has secured a deal to pay approximately 9.48 U.S. dollars a barrel though Sudan demanded South Sudan to pay 36 dollars a barrel for pipeline transportation fees.

"South Sudan only had to increase its last offer by 1.87 dollars," said the release.

Mbeki emphasized on the need that the oil-production in South Sudan should be resumed for the economy of both neighboring countries.

But, that agreement has not been concluded, said the chief mediator.

"The parties have been meeting in Addis Ababa, Ethiopoia, for the last 22 days this last session we adjourned yesterday and we will reconvene soon after Eid (a Muslim holiday) which is around the 22nd, the 23rd or the 24th of this month," said Mbeki.

He also revealed that the presidents of the two countries would have summit to sign documents which have already been initialized and also deal with the final status of Abiye.

"At the next summit between President Omar Hassan Al Bashir and President Salva Kiir, they will sign a document which was initialed in March which relates to the question of among others relates to the question of demarcation of the agreed sections of the border between Sudan South Sudan, which would make it possible to activate the systems and the mechanisms that are visualized in that agreement to make sure that the area the process of demarcating agreed sections of the border takes place as soon as possible," he said.

He also mentioned that the two parties have agreed to have a joint delegation which will go around the world seeking financial support from different countries.

Mbeki also stated that the joint delegation would work for external debt cancellation for Sudan.

"They have agreed that the two parties would constitute a joint delegation which is also in cooperate with our panel, a joint delegation which would visit a number of countries around the world to solicit financial support for them," he said.

South Sudan has also said it has offered about 3.028 billion dollars in direct financial assistance (TFA) to Sudan over a period of three and half years.

This is equivalent to 1/3 of Sudan's financial gap resulting from the loss of South Sudan's oil, it said, adding that the TFA is separate and apart from the pipeline transportation fees.

Mbeki also said that the AU Peace and Security Council passed a decision that the two parties should finalize the netotiations by Sept. 22 this year.

"We will conclude these negotiations by the 22nd of September during which time the negotiators will conclude the negotiations on all outstanding matters," he said.

According to the release from South Sudan, the result of the negotiation will be a single comprehensive peace agreement that will ensure the mutual viability of both states.

"South Sudan's negotiations team will return to Ethiopia soon to finalize the details of this oil deal and conclude additional agreements addressing the outstanding security issues, disputed and claimed border areas, the final status of Abiye, and further matters related to nationality," said South Sudan. Enditem