South Sudan and Sudan have signed a deal about oil production and export hours after the US administration advised the Government of Juba to sign a short time agreement with Khartoum to resume oil exports.
Chief mediator Thabo Mbeki told reporters in Addis Ababa that the oil agreement covers charges for transportation, processing and transit, Reuters reported.
He added that the delegations have to discuss the steps as to when the oil companies should be asked to prepare for the resumption of production and export.
The deal ends a seven-month long dispute between South Sudan and Sudan about oil export fees that led to the shutdown of oil production at the end of January.
The announcement came hours after Secretary of State Hilary Clinton advised the Government of South Sudan to seek a short time interim oil agreement with Sudan until a long term deal was signed.
The agreement represents a life-line for the economies of South Sudan and Sudan on the brink of collapse due to lack of revenue.
The negotiators have yet to agree on nationality, security and borders issues.