Eng. Daniel Awou Chuang, South Sudan petroleum minister and Sudanese oil minister Eng. Adel Ali Ibrahim sign the deal. Credit: Al-hadas.

South Sudan and Sudan have signed extension of the agreement on oil and related economic arrangements until March 2022.

The agreement was signed by oil ministers of the two countries on Monday evening, in the Sudanese capital, Khartoum.

They approved transit, processing and sovereign fees for the southern crude that is transported through Sudan by the Greater Nile Company pipeline.

South Sudan will $26 for each barrel for the Greater Nile Company pipeline  while $24.1 will be paid for using Petrodwar Company pipeline.

Through the deal, South Sudan will supply Khartoum refinery 28 thousand barrels per day.

“This is very important for us to safeguard as strategic instrument for us to advance our agenda for oil and energy security within the two countries,” Engineer Daniel Awou Chuang, the minister of petroleum said after signing the deal.

“As we move on, we know that South Sudan cannot export the crude oil except through Sudan because they have the facilities for that and also we know Sudan relies on South Sudan in regards to energy needs for power generation and refinery.”

Meanwhile the Sudanese Minister of Energy and Mining, Eng. Adel Ali Ibrahim says the agreement also reveals the real brotherhood and friendly relationship between the two countries.

“As we agreed before at high government levels to support and strengthen relationship between the two countries, based on mutual interest and based on real brotherhood and real neighbors and as one nation two peoples,” said the Sudanese oil minister.

South Sudan depends on oil facilities in Sudan to export its crude oil.