South Sudan resumes oil shipments in 4 months

South Sudan plans to resume oil shipments in February 2013 once its parliament ratifies a raft of deals reached last month in Addis Ababa with the neighboring Sudan.

South Sudan in January shut down its oil production after accusing Sudan of stealing its crude.

When South Sudan peacefully broke away from Sudan last year, it inherited the majority of the region’s oil. But South Sudan’s oil must be pumped through pipes owned by Sudan, which said it had taken the south’s oil in lieu of unpaid fees for the use of its export and processing facilities. When tensions increased, the south shut down its industry, costing both sides millions in lost revenue.

The two sides signed agreements late last week after four days of talks between both countries’ presidents. Those agreements paved the way for a resumption of southern oil production.

Last month, South Sudan Oil Minister Stephen Dhieu Dau said it could take between four and six months before the Upper Nile fields reach full production again.

The agreement will allow South Sudan to export its oil through the Sudanese pipelines. South Sudan will pay US$9.10 per barrel for oil produced in Upper Nile state and US$11.00 for oil produced in Unity State.