NCP and SPLM delegations spent six days in Ethiopia in a new round of post- referendum negotiations and agreed that oil companies operating in South Sudan would revert their contracts to the government of Juba.
North and South Sudan have been splitting proceeds of crude oil since 2005under the power sharing protocol of the Comprehensive Peace Agreement.Gabriel Changson Chang, GoSS minister of Culture and Heritage, took part in the negotiations. He told SCR News that the oil committee discussed the issues of ownership and agreed that the oil companies operating in south Sudan will regress their contracts from Khartoum to Juba.
Mr. Chang revealed that Sudapet, the national oil company, will transfer to north Sudan and Nilepet, the South Sudan counterpart, will take its role in the South.
Oil accounts for over 95 percent of South Sudan budget whereas the north derives half of its budget from oil revenues.
Both sides will need each others’ cooperation to sustain their oil-dependent economies after the referendum.
The SPLM and NCP delegations will return to Ethiopia on April 5 for another round of intensive negotiations under the guidance of the African Union Panel.