Sudan and South Sudan reach agreement over oil
August 5 , 2012
Sudan has signed a deal with South Sudan over oil payments in a dispute that threatened to bring the two nations to war.
South Sudan has agreed to pay Sudan just over $9 per barrel to transport oil to its ports.
South Sudan halted oil production in January and Sudan is to receive $3 billion as compensation for revenue lost during that period.
Over the last three weeks, the two countries have held talks in the Ethiopian capital Addis Ababa. The deal is dependant on further discussions on security.
The talks are set to resume towards the end of the month with a summit between the presidents to seal the deal.
South Sudan seceded from the north in 2011 and took three-quarters of Sudan's oil with it.
A war nearly broke out in April when South Sudanese troops briefly occupied the disputed oil-rich border area of Heglig.