Sudan requested South Sudan to supply crude to run Rabak power generating plant in Kosti, White Nile State.
Government spokesperson Barnaba Marial Benjamin told the press that the petroleum ministers of both countries signed a memorandum of understanding for South Sudan to supply 4,500 barrels of oil per day to Sudan.
The memorandum was inked during the visit Vice President Riek Machar Teny paid to Khartoum last Sunday, accompanied by five ministers, to clear tensions between Juba and Khartoum.
The two governments will work out an agreement to formalize the oil crude sale.
Dr Marial said Dr Machar briefed in detail the Cabinet on his trip to Khartoum.
He said the talks were successful and the two countries remained committed to the cooperation agreements through direct dialogue mediated by the African Union.
Dr Machar chaired the very long ordinary Cabinet sitting on Friday.