Struck under an African Union mediation, and announced today in Addis Ababa, Ethiopia, the deal reportedly covers transportation, processing and transit of landlocked South Sudan’s 350,000-thousand-barrel-a-day oil production through Sudan’s pipelines at $9.48/barrel for a term of three-and-a-half years. Some hotly-contested border issues, however, will need to be resolved first. Until South Sudan seceded from Sudan last year, the two countries shared for the most part a unified oil industry. NBC: “South Sudan strikes deal with Sudan to export oil through pipelines“.
(Jenny Vaughan/AFP – Getty Images)
AU mediator Thabo Mbeki in Addis Ababa today.