A late June agreement between Sudan and South Sudan to increase crude output from the south raised hopes of cooperation that could help the two struggling economies. But Juba is withholding crude that Khartoum expects to receive in August.
Contrary to promises made by the country’s energy ministry, South Sudan did not cease its crippling diversions of crude to Sudan in June, according to trading data seen by MEES.
Energy Minister Ezekiel Lol Gatkuoth said in late February that Juba would cease the deliveries because it had apparently paid off debts to Khartoum: a combination of arrears in transit payments for the use of Sudan’s oil export infrastructure and overdue payments towards the $3.028bn agreed in compensation for Sudan’s loss of oil resources and infrastructure when the south became independent in July 2011.
But Mr Gatkouth’s claim always appeared based...