JUBA - South Sudan said on Friday it was preparing to gradually shut down oil production within two weeks after Sudan said it had started seizing southern oil to compensate for what it said were unpaid transit fees.
Sudan and South Sudan are locked in a row over sharing oil revenues after Juba took two-thirds of output when it became independent in July.
The landlocked new African nation needs to use a northern pipeline and port to export the crude but has failed to reach an agreement with Khartoum over a transit fee, prompting Sudan to seize part of its oil as compensation.
"The ministry of petroleum and mining will sit down to start a technical process that will lead to a decision that will lead to a complete shutdown. That will be in a week or two weeks," government spokesman Barnaba Marial Benjamin told Reuters.