Juba to pay Khar­toum $1.2 bil­lion

The East African - - OUTLOOK -

The News: South Su­dan will pay Su­dan $1.2 bil­lion in out­stand­ing oil debt as oil out­put in­creases with re­open­ing of more oil­fields, ac­cord­ing to Petroleum Min­is­ter Ezekiel Lol Gatkuoth.

The Low­down: Ac­cord­ing to Mr Gatkuoth, South Su­dan had paid off about $2 bil­lion but the re­main­der was de­layed af­ter the coun­try plunged into civil war in 2013 and oil pro­duc­tion was sub­se­quently sus­pended in the north­ern parts of the coun­try in 2014. The debt em­anated from a 2012 deal that ended a dis­pute be­tween the two coun­tries over oil pay­ments fol­low­ing the South's in­de­pen­dence from Su­dan in July 2011. Un­der the agree­ment, Juba agreed to pay $3 bil­lion dol­lars to Khar­toum as com­pen­sa­tion for oil re­serves Khar­toum lost to Juba af­ter in­de­pen­dence. He said with the re­cent re­open­ing of the Unity oil fields, the coun­try will use its in­creased oil pro­ceeds to fin­ish the debt, say­ing the countty has al­ready paid $2 bil­lion.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.