Sudan says taking some S.Sudan oil but won't close pipe

By REUTERS
January 15, 2012 17:46

 
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KHARTOUM - Sudan on Sunday said it has started confiscating some oil exports from South Sudan it believes it is due to meet unpaid transit fees but will not shut down a pipeline carrying the southern state's oil.

South Sudan became independent in July under a 2005 peace deal with Khartoum that ended decades of civil war killing two million people but both sides have failed to sort out a long list of disputes.

The biggest conflict is over oil revenues - the lifeline of both economies. Land-locked South Sudan got two thirds of the country's oil output but needs to pay fees to use northern export facilities.

Both countries have failed to agree on a transit fee but will resume on Tuesday talks sponsored by the African Union in Ethiopia. Previous rounds ended with the parties still wide apart.

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