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Sudan Cuts Transit Fees For South Sudan’s Oil, Opens Border For The First Time

Sudan Cuts Transit Fees For South Sudan’s Oil, Opens Border For The First Time

Sudan President Omar al-Bashir agreed to cut the transit fee for South Sudan’s oil crossing its territory after the two countries opened their borders to each other for the first time on Tuesday.

Reuters quoted Sudan’s state news agency SUNA saying that Bashir had opened its border with Africa’s newest nation South Sudan for the first time since the later seceded after decades of war between the Arab-dominated north and the oil rich south.

Opening of the border signified improving relation between the two countries that have for years accused each other for supporting rebels in the respective countries.

South Sudanese government accused Sudan of backing anti-government rebels while Sudan alleged that the young country supported separate rebellions in Darfur region, Blue Nile and South Kordofan states.

Sudan_politicaly_distrikt_map_Jul2006South Sudan seceded from Sudan in 2011 to become Africa’s newest nation after more than five decades of a guerilla struggle that left over two million people dead.

Independence has however not brought peace to South Sudan as the country slipped into another civil war in 2013 after two largest tribes in the country disagreed of how power was being shared. The latest crisis has displaced some 2.2 million people, BBC reported.

South Sudan took with it almost three quarters of the former Sudan’s oil fields with an estimated five billion barrels of proven reserves, but Sudan hiked transit fee of transporting the oil through it territory to the Red Sea port.

With the opening of the border, Bashir said he has agreed to cut the transit fee for oil crossing through his country.

Sudan had agreed to renegotiate fees it charges South Sudan on oil passing through its borders after crude prices declined on the international markets, Bloomberg reported last week.

Last week, South Sudanese President, Salva Kiir, asked his army units of the Sudan People’s Liberation Army (SPLA), to pull back to 5 miles (8 km) from the borderline with the Sudan, asserting that his government had decided to improve relations with Sudan in the interest of peace and stability between the two countries, Sudan Tribune reported.