Sudan and South Sudan on Monday agreed to extend a deal that allows South Sudan to export its crude oil until March 2022, Sudan’s state news agency SUNA said.
The agreement also included related economic arrangements between the two countries.
The oil extension deal was signed in Khartoum by Sudanese Minister of Energy and Mining Adil Ali Ibrahim and South Sudan's Petroleum Minister Awou Daniel Chuang.
According to the deal, South Sudan would pay $26 for each oil barrel passing through the pipeline operator, Petrolines for Crude Oil Ltd. which belongs to the Greater Nile Petroleum Operating Company, and $24.1 for each oil barrel transported through Bashayer Pipeline Company which belongs to Petrodar Operating Company.
The deal also stipulates that South Sudan should give Sudan Refinery and Um-Dabakir Station 28,000 barrels of crude oil per day.
Sudanese Minister of Energy Adil Ali Ibrahim said the agreement represents a great step to boost the cooperation between the two countries in the oil sector.
He pointed out that the deal would also enhance the cooperation to increase the oil production in South Sudan and establish greater economic projects for the benefit of the two countries.
For his part, South Sudan's Petroleum Minister Awou Daniel Chuang reaffirmed the two countries' commitment to the oil cooperation agreements.
The agreement was originally signed in 2012 and had been extended until December 31, 2019. It has now been extended again until March 2022.
Landlocked South Sudan, which seceded from Sudan in 2011, depends on oil exports flowing north to fund its budget.