Bloomberg News

South Sudan Plans to Shut Down Oil Output Over Sudan Fee Demand

January 23, 2012

Jan. 20 (Bloomberg) -- South Sudan plans to shut down its oil production after Sudan demanded it pay a transit fee of $36 per barrel to ship the crude via a pipeline that runs through the neighboring country, Deputy Oil Minister Elizabeth James Bol said.

South Sudan’s Council of Ministers approved a resolution on the shutdown today, Bol said in a phone interview from Juba, the capital. The planned shutdown was reported earlier by the Sudan Tribune.

“The resolution was just passed,” she said. Production will be stopped “until we can compromise on the transit fee.”

South Sudan assumed control of about three-quarters of Sudan’s output of 490,000 barrels a day when it seceded on July 9.

To contact the reporter on this story: Jared Ferrie in Juba at

To contact the editor responsible for this story: Paul Richardson at

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