South Sudan oil exports to continue through Sudan

The risk of disruption of oil supplies to India from South Sudan has been averted with an agreement reached between South Sudan's President Salva Kiir Mayardit and his Sudanese counterpart Omar Hassan al-Bashir in Khartoum.

"The presidents of Sudan and South Sudan signed the agreement for transport of South Sudan oil through Sudan's facilities and ports. They also agreed to honour all bilateral agreements signed," Hassan EL Talib, Sudan's ambassador to India said here Thursday.

Sudan had earlier this year threatened to stop the landlocked South shipping oil through its territory by Friday unless South Sudan cuts its ties with rebels operating across their common border.

South Sudan came into being as a new country with a referendum in Sudan in 2011 after a period of internal conflict. The landlocked country retained about 75 percent of the oil and gas resources of undivided Sudan, and under an agreement with Sudan, the oil flows to the north for refining and export from Sudan's Red Sea coast.

South Sudan produces around 200,000 barrels a day, while its oil fields are mainly run by Chinese, Indian and Malaysian firms.

"South Sudan has very little infrastructure, railways, paved roads or education," the Sudanese ambassador told an audience here while speaking on India-Sudan relations at the Jamia Milia Islamia.

The South Sudan president was forced to put off his planned visit to India in the last week of August as he had to attend to the resolution of the oil supplies crisis.