Sudan receives $183m in pipeline transit fees

05 August 2014

Oil minister says cash injection will boost Sudan’s foreign reserves

The Sudanese government has received $183m in transit fees since signing a framework agreement on 28 June. The deal was signed with international oil companies operating on blocks number 3 and 7 in South Sudan and deal entitles Khartoum to $366m annually until the end of 2017.

Sudan’s Oil Minister Makkawi Mohamed Awad told state news agency Suna that the money had been transferred by China National Petroleum Corporation (CNPC) and the Malaysian oil and gas company Petronas.

Awad praised the two firms for their commitment to the agreement and said the money would help to boost Sudan’s foreign reserves.

Oil used to be the main source of revenue for Sudan until the south seceded in July 2011, taking with it 75 per cent of Khartoum’s oil production. While most oil assets are now located in South Sudan, the oil is still transported through pipelines in Sudan.

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