After agreeing a deal between Sudan and South Sudan that aims to open up the oil production of the two countries, the US is hoping that China and Middle Eastern states will help invest up to $3bn to get oil flowing.
The deal between the two neighbouring countries will see South Sudan pay a fee of $9.48 for every barrel transported through a pipeline in Sudan, as well as paying over $3bn to Khartoum as a result of the separation of the two countries. However, Sudan also requires an additional $3bn to fill the funding gap created by the separation.
South Sudan is relatively oil rich compared to its neighbour, and upon secession took much of the money that had propped up the Sudanese economy. As a result, earlier this year both countries nearly went to war over oil sharing.
Sudan’s economy has struggled this year, but US President Obama hopes the agreement will help get it back on track: “This agreement opens the door to a future of greater prosperity for the people of both countries.
“The leader of Sudan and South Sudan deserve congratulations for reaching agreement and finding compromise on such an important issue, and I applaud the efforts of the international community, which came together to encourage and support the parties in finding a resolution.”
As the US says it is unable to provide the $3bn itself, it is reportedly looking toward countries around the world to step up.