6 Aug 2012

Sudan and South Sudan strike deal

10:45 am on 6 August 2012

Sudan and South Sudan have struck a deal on an oil payments dispute that brought the two countries to the brink of war earlier this year.

Landlocked South Sudan shut down oil production in January after failing to agree a deal on oil transit fees with its northern neighbour.

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

Former South African president and African Union mediator Thabo Mbeki said all outstanding issues had been resolved, but he gave no further details on the agreement, the BBC reports.

When South Sudan seceded from the north in 2011, it took threequarters 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.