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Sudan suspends South Sudan oil export due to arrears

(Xinhua)

11:19, November 29, 2011

KHARTOUM, Nov. 28 (Xinhua) -- Sudan on Monday decided to suspend the export of South Sudan's oil through its territories until the south pays its arrears of fees agreed upon by the two countries.

"This decision was taken ten days ago because South Sudan has not yet paid its due arrears," Sudanese Acting Minister of Petroleum Ali Ahmed Osman told a press conference held here Monday.

"We estimate the due arrears on South Sudan at about 727 million U.S. dollars for the period since South Sudan's separation on July 9 until the end of October this year," Osman said.

The Sudanese minister further refuted that the government's decision would affect the work of foreign companies operating in the oil fields in the country, saying that "the pipeline is still operating and the foreign companies are still working normally."

They "will not be affected by the decision," he stressed.

Sudan and South Sudan are supposed to negotiate on the sharing of the latter's oil revenues. South Sudan, a land-locked country, has to transit its oil to Sudan's ports on the Red Sea for exports.

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