IAS Daily Dose: Current Affairs 2013 for UPSC IAS Exam - Sudan and South Sudan settle oil dispute

Last Updated: May 20, 2013 at 11:16:35

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Current Affairs Notes for PT 2013

Landlocked South Sudan shut down oil production in January after failing to agree a deal on oil transit fees with its northern neighbour. The dispute has severely impacted the economies of both countries.

A United Nations deadline for the neighbouring countries to resolve their differences - including the oil payments dispute and disagreements over borders – has expired.

When South Sudan seceded from the north in 2011, it took three-quarters of Sudan's oil with it.

The dispute over how much South Sudan should pay Khartoum to transport oil through its territory has led to huge economic problems in both countries.

South Sudan has suspended all oil production, accusing its neighbour of stealing its exports, while austerity measures have sparked weeks of protests in Khartoum.

The two countries came close to all-out war in April, when South Sudanese troops briefly occupied the disputed oil-rich border area of Heglig.