Business
Newly independent South Sudan signs first oil deals
Oil Revenues
China, which relies on South Sudan for nearly five per cent of its oil, also signed several cooperation deals with South Sudan Friday during visit by Li Yuanchao, a senior member of China’s ruling Communist Party.
They included a deal for “economic and financial cooperation” as well as a training agreement between the state-run China National Petroleum Corporation (CNPC) and the South’s oil ministry, the government website said.
Despite its oil wealth, the new state of South Sudan lacks the infrastructure to refine and export oil.
Beijing is a key ally of the Khartoum government, which has tried to offset the heavy loss of southern oil revenues by charging what Juba has described as an extortionate fee to use its infrastructure to export crude via the Red Sea.
China is supporting ongoing negotiations between the two Sudans over pipeline fees, with the next round of talks due January 17.
Copyright 2012 AFP
