September 22, 2020 (KHARTOUM) – South Sudan’s Minister of Petroleum, Puok Kang Chol, arrived in Khartoum on Tuesday, to discuss developing oil technical cooperation, between the two countries
Chol told reporters that the purpose of the visit is to inspect the arrival of oil production equipment through Port Sudan. These gears are needed for the resumption of oil production in the Thar Jath field in Unity state and how to transport it to South Sudan.
He also said they want to discuss the resumption of the second phase in the Unity fields.
Khairy Abdel-Rahman Sudan’s acting oil minister described the visit as important saying it would contribute to developing bilateral cooperation.
Abdel-Rahman further stressed Sudan’s readiness to provide all technical assistance and facilitate the flow of equipment to the South Sudanese oil fields through Port Sudan.
The Sudanese minister pointed to the joint technical cooperation in the production of the South Sudanese oil, adding they are ready to develop the technical cooperation and exchange.
Oil transit fees
Chol also said that the discussions between the two sides would touch the oil transit fees.
“Also, we want to discuss the transitional financial arrangements related to oil transit fees, in order to reach a consensual outcome between the two parties, ” added the visiting South Sudanese minister
Sudan and South Sudan agreed on Wednesday to extend the agreement on the transit of oil for export through Port Sudan on the Red Sea until 2022.
In November 2019, Juba proposed to reduce the pipeline transit fee to become $15 per oil barrel.
Khartoum for its part proposed to strike a deal on the method of payment as Sudanese officials say the country needs oil to cover local needs.
In line with an agreement reached in August 2012, South Sudan would pay a pipeline transit fee of $9.10 and $11 per oil barrel in addition to $3.08 billion in assistance to help Sudan overcome the loss of oil.