Sudan agrees to renegotiate South Sudan’s oil transit fees

Sudan has agreed to renegotiate fees it levies South Sudan oil transiting through its country after crude prices declined, according to a government official of the world’s youngest nation.

“We haven’t received official information, but it is good they have agreed to negotiate on what we can pay,” Mawien Makol Arik, a spokesman for the country’s foreign affairs ministry, said by phone Friday from Juba, the capital.

Sudan’s government exports its neighbor’s crude through pipelines to a port on the Red Sea and collects a fixed $25 per barrel in transit fees. South Sudan pumps about 160,000 barrels per day, just a third of what it used to produce before a civil war began in December 2013.

 – Bloomberg