UN: S.Sudan oil shutdown to increase food aid dependence

By REUTERS
February 3, 2012 15:53

 
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PIBOR, South Sudan - South Sudan's decision to shut down its oil output will make many more people dependent on food aid in one of the world's most undeveloped nations, the United Nations said.

Landlocked South Sudan, which relies on oil revenues, turned off its oil production last week in response to the seizure of some of its oil by neighboring Sudan over a row about pipeline transit fees.

South Sudan needs to export its crude through Sudanese export facilities but both countries have failed to agree on a transit fee. Talks sponsored by the African Union are expected to resume next week but diplomats say no compromise is in sight.

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