South Sudan Oil Minister Stephen Dhieu Dau has asked the Republic of Sudan to reduce pipeline fees, which landlocked South Sudan pays in order to export its oil to the Red Sea. He said his Sudanese counterpart will consider the matter and he hopes it will be discussed in a meeting 18 March in Khartoum.
Speaking at Crown Hotel in Juba yesterday evening, Dhieu said, “We are asking that will be good for us to discuss it and they have not yet accepted it but the two committees from the two countries will discuss on it in the next time meeting. There are not any actual figures that I can provide currently.”
The two countries agreed in 2012 on pipeline fees whereby Juba pays Khartoum a fixed amount per barrel of oil transported through Sudanese territory. The fixed rate fee has remained the same even as global oil prices have plummeted and South Sudan’s own production dropped owing to civil war.
Dhieu also announced that Sudan will take steps to help the resumption of oil fields in Unity state, reportedly agreeing to supply South Sudan with electricity from Heglig (Panthou) while resuming the production in the oil fields of Unity State.
He mentioned another similar plan for importing electricity from Kosti in Sudan. He said this is subject ot further discussion and expected an agreement by 18 March.
He reiterated that they have agreed to work hard for the opening of the boarder that will allow the movement of the materiel and critical equipments to the oil fields in South Sudan in order to increase production.
For his part, Sudanese oil minister Dr Makkawi Mohamed Awed said his government is ready to offer training opportunities for South Sudanese officials working in the oil and electricity sectors, so that they gain skills in how to manage oil production. He added that the project of providing electrical power to Renk by the Sudanese government will be continued for mutual benefit.
The two ministries have further signed a memorandum of understanding relating to the implementation of the 2012 Cooperation Agreement.