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South Sudan Orders Restart to Oil Production

  • VOA News

Sudan's President Omar Hassan al-Bashir (C) is welcomed after arriving at Khartoum Airport on September 28, 2012. Sudan and South Sudan, which came close to war in April, have agreed to improve border security and to restart oil exports from the South through northern pipelines.

Sudan's President Omar Hassan al-Bashir (C) is welcomed after arriving at Khartoum Airport on September 28, 2012. Sudan and South Sudan, which came close to war in April, have agreed to improve border security and to restart oil exports from the South through northern pipelines.

South Sudan has ordered the resumption of oil production after the signing of agreements with Sudan aimed at ending hostilities and restarting southern oil exports through the north.

"The resumption of crude oil production, petroleum operations and transportation will be carried out immediately in accordance with the transitional agreements," said Dhieu Dau, South Sudan's oil minister said on Tuesday.

Dau said the government expects oil exports to reach the international market within 90 days.

The deal establishes fees for South Sudan to use Sudanese oil pipelines, and sets up a 10-kilometer demilitarized border zone from which both countries' armies must withdraw.

It also provides Sudan with about $3 billion in compensation for South Sudan's secession last year.

Both countries' parliaments ratified the deal this week.

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The two Sudans have yet to decide who will control some border areas, including the oil-producing Abyei region.

The countries nearly went to war in April after South Sudanese forces occupied an oilfield near the border.

South Sudan halted oil production in January to protest high fees levied by Sudan for use of their oil facilities.

The shutdown dealt a severe blow to both countries' economies. Oil revenues account for more than 90 percent of revenues for South Sudan's government.
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