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South Sudan on Thursday issued an order instructing foreign and national companies involved in oil industry to immediately resume production and exports through the territory of neigbouring Sudan.
The Sudanese parliament approved on Wednesday the cooperation agreement and accompanying deals signed with South Sudan last month despite objections raised by some members over the aspect of four freedoms.
Amid public dissent the South Sudan parliament ratified a cooperation agreement which president Salva Kiir with his norther counterpart, Omar al-Bashir signed on September 27 in the Ethiopian capital of Addis.
South Sudan’s biggest oil company Dar Petroleum pledged to kickstart production as soon as possible following last week’s deal on oil signed by Sudan and South Sudan.
Total SA said it’s in talks with South Sudan’s government about the state’s decision to split an oil concession that it previously held a controlling stake into three blocks.
South Sudan will receive payment for oil it said Sudan illegally loaded onto two ships earlier this year, according to the terms of an agreement signed yesterday between the two countries.
South Sudan expects to receive $540 million held in foreign bank accounts once an oil agreement is signed with neighboring Sudan, Finance Minister Kosti Manibe said.
South Sudan is targeting mid-2013 as the estimated time it will regain full crude production. The nation could see its production rise back up to at least 300,000 bpd once damage to fields during its dispute on the border with Sudan is repaired.
South Sudan has decided to break up a massive oil concession largely held by Total, into three blocks, granting one to the French energy company and the others to two foreign firms, government officials said in a Reuters report.
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