South Sudan Strikes Oil Deal with Sudan

South Sudan has reached a deal with Sudan over oil exports through Sudan's pipelines, but the agreement won't go into effect until border concerns are addressed, South Sudan government said Saturday, NBC News reported. Landlocked South Sudan will pay about $9.48 a barrel to transport its fuel through Sudan's pipelines. The deal on pipeline transportation fees will last for three and a half years, after which the countries may negotiate lower rates or South Sudan, which expects to have constructed a pipeline through Kenya, will stop using Sudan's pipeline. The White House praised the deal and encouraged agreement on humanitarian issues as well. Oil triggered a dangerous military skirmish between the two sides in April, when South Sudan captured the disputed town of Heglig, which is responsible for more than half of Sudan's oil production.

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