Oil to flow by year-end

South Sudan officials said they expected to resume oil production and exports by the end of the year after signing a raft of agreements with their northern counterparts. South Sudan stopped oil production on January 22 this year following a dispute over the oil transit fee demanded by Sudan, and accused Khartoum of confiscating $815 million worth of oil from the Port Sudan pipeline. South Sudan’s chief negotiator, Pagan Amum, said his Oil Ministry had directed oil companies to begin preparations for exports in early August after reaching an interim deal with Sudan; but Sudan insisted that the oil would flow only after a broader agreement on borders and security, prompting concerns that exports would be delayed well into next year as oil companies would take months to resume production. “From the time we reached an agreement in August…the Ministry had indicated to them to start preparation,” Mr. Amum said, “I believe, before the end of the year, oil will flow.” India’s ONGC Videsh, a subsidiary of the Oil and National Gas Corporation has a significant share in South Sudan’s oil fields along with the China National Petroleum Corporation.