South Sudan 'to complete shutdown' of oil production

LONDON. January 28. KAZINFORM South Sudan says it will complete the shutdown of its oil production on Saturday, after attempts to resolve a dispute with Sudan failed.

The presidents of both countries held talks in the Ethiopian capital, Addis Ababa, but were not able to sign a deal.

South Sudan seceded from Sudan in July, and uses its northern neighbour's infrastructure to export its oil.

The two countries disagree about how much this should cost, BBC News reports.

Oil transit fees are a big part of Sudan's budget. The country lost most of its oil producing areas when the south became independent.

It accuses South Sudan of not paying its fees, and has started seizing oil in lieu of those fees.

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