Sudan blocks South Sudan oil

Sudan blocked nine security and economic pacts, including oil agreements, with South Sudan. Sudan blocked nine security and economic pacts, including oil agreements, with South Sudan. According to the Agence France-Presse, Khartoum, the capital of Sudan, said it maintain good relations as long as the South ends its support for rebels.

"We are still committed to have good relations with South Sudan and if they are serious about implementing the nine agreements we can return to cooperate with them," said Information Minister Ahmed Bilal Osman.

President Omar Al-Bashir issued an order June 8 to shut down the pipeline that exports South Sudanese crude oil, the source reported. Although oil was shutdown, some of South Sudan's exports did reach Port Sudan and the country is permitted to sell it as long as it pays its dues to Khartoum. According to the source, South Sudan only resumed oil flow after reaching an agreement with Sudan in March that normalized relations by setting up a border buffer zone.

"We will continue to implement the terms of the co-operation agreement," said South Sudanese Information Minister Barnaba Marial Benjamin.

Although they agreed to work with Sudan, the South accused Khartoum of sending troops into disputed border zones, the AFP reported.

Learn more about Sudan's energy report in PennEnergy's research area.

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