New Agreement Between Khartoum and Juba on Oil Transit Fees

The Government of South Sudan announced that it has reached a comprehensive settlement with Sudan on all outstanding issues related to crude oil transit fees and export terminals in Port Sudan, in a strategic step expected to enable Juba to restore the flow of oil revenues transported through the Sudanese territories.

According to a press statement issued by his Office, President Salva Kiir Mayardit received a comprehensive report on the performance of the oil sector, including updates from the Nile Petroleum Corporation on progress made and ongoing efforts to ensure the smooth flow of crude oil to international markets without impediments.

Oil sector official Emmanuel Atheel briefed the president following an official visit to Port Sudan on March 29, 2026, during which understandings were reached with oil service and operating companies, including the Bashayer Pipeline Company. These arrangements covered transit fees and technical measures to secure the flow of South Sudanese crude through Sudan to export facilities.

Atheel affirmed that the key financial issues that had previously disrupted crude exports have been resolved, including settlements of accumulated obligations.

These developments are expected to restore stability to the oil sector and bolster public revenues.

He further noted that the Nile Petroleum Corporation has cleared inherited financial obligations owed to Petronas amounting to $120 million, strengthening its financial position and enabling it to meet salary commitments and support priority government responsibilities.

He projected an increase in oil revenues as a result of these operational improvements.

The Presidency also indicated that Sudanese oil companies will hold in-depth discussions in Juba later this month on transportation and processing arrangements extending to export terminals in Port Sudan, as part of finalizing the technical and implementation aspects of the agreement.

In the investment context, the meeting reviewed an offer from a Qatari company to acquire a 30 percent stake in Petronas’s assets in South Sudan, currently managed by Nilepet, underscoring that the country’s oil sector remains open to global investors.