South Sudan is to supply Sudan with 28,000 bopd which will be used to generate production and meet the country’s local needs.

This is coming after oil ministers from the two countries entered into a second agreement on Wednesday. They agreed to revise the transit fees being paid by South Sudan for the exportation of its oil using Sudan’s pipeline and oil infrastructure.

The Sudanese oil ministry in a statement said Juba agreed to supply 18.000 bopd to a power plant in the White Nile state and additional 10.000 barrel of oil crude to Khartoum refinery to feed rising demand for petroleum products.

The agreement was signed prior to the launching of a new power plant in Um Dabakir area in the While Nile state at a capacity of 500 megawatts by President Omer al-Bashir. The agreement is also coming as part of the Sudanese government’s plan to boost the Khartoum refinery’s capacity to 200.000 bpd.

Although the statement did not provide details about the financial cost of the deal, analysts say that it will be in line with the international market.

According to Sudan Tribune, the agreements will unite the joint interests and cooperation between the two countries and assist in resolve outstanding issues.

Anita Fatunji