South Sudan offers Khartoum $3bn

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Category: International News

Published on Tuesday, 24 July 2012 06:12

Written by Online Journalist

South Sudan has offered its neighbour Sudan more than $3bn (£2bn) in compensation for economic losses caused by the South's independence.

They are holding talks in Ethiopia in a bid to resolve bitter disputes ahead of a UN deadline on 2 August.

Juba also proposes an increased transit fee to move its oil through Sudan and says it will waive its claim to nearly $5bn it says it is owed by Khartoum.

Khartoum has not yet responded to the proposals.

South Sudan's chief negotiator, Pagan Amum, said Juba had tabled its "last offer".

"We are left with nine days [before the UN deadline]. It's time for the parties to conclude an agreement," he said.

South Sudan became independent from Sudan just over a year ago, but many disputes between them remain unresolved.

They include border squabbles and disagreements over oilfields, transport payments and divisions of the national debt.

The latest proposal includes compensation of $3.2bn - up from a previous offer of $2.6bn.

Sudan lost three-quarters of its oil production when South Sudan seceded.

-BBC