Sudan, S Sudan strike oil exportation deal

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Sudan, S Sudan strike oil exportation deal

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S Sudan said that it will pay $9.48 a barrel to transport its fuel through Sudan's pipelines.

04 August,2012 06:05 pm

In a statement Saturday South Sudans government said that it will pay approximately $9.48 a barrel to transport its fuel through Sudans 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 Sudans 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 Sudans oil production.