Khartoum needed Juba to pay about $36 a barrel for a bundle of fees to pipe the oil to port; Juba countered with an offer of below $1 and mentioned it might pay the rest directly to the international firms who produce the oil. Whereas they haggled, South Sudan stored exporting crude on the understanding it would pay Khartoum back as soon as a deal was struck. However as South Sudan collected over $3 billion in oil revenue, Sudan's economy cratered. The Sudanese pound halved in value, driving up the cost of imports like wheat and sugar.
Sunday, October 27, 2013
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Khartoum needed Juba to pay about $36 a barrel for a bundle of fees to pipe the oil to port; Juba countered with an offer of below $1 and mentioned it might pay the rest directly to the international firms who produce the oil. Whereas they haggled, South Sudan stored exporting crude on the understanding it would pay Khartoum back as soon as a deal was struck. However as South Sudan collected over $3 billion in oil revenue, Sudan's economy cratered. The Sudanese pound halved in value, driving up the cost of imports like wheat and sugar.
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