Sudan’s finance minister Badr al-Din Mahmoud said they will not lower fees paid to them by Juba for transport of South Sudanese oil through northern pipelines.
Juba has asked Khartoum to reduce the fixed fee of 24.50 US dollars per barrel, which was agreed under the September 2012 Cooperation Agreement signed in Addis Ababa.
South Sudan’s ministry of petroleum reportedly sent a letter to Khartoum requesting the fee be decreased due to collapse of international oil prices to under thirty dollars per barrel.
“The transit fee for South Sudan oil is governed by an agreement signed in September 2013, so it will not be amended or renegotiated,” Badr al-Din said in a press statement.
Juba has warned Khartoum that it will shut down its only active oilfield in Paloich unless the cost of transporting crude through Khartoum is revised to reflect the globally low oil prices.