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South Sudan strikes compromise on pre-sales of crude

The government of South Sudan has followed through on its promise to put a stop to pre-financing deals done directly with oil traders. “All prepayments to companies have been stopped,” an oil executive based in Juba told African Energy. But a more complex deal, in which the African Export-Import Bank (Afreximbank) issues letters of credit (LCs) to the government against the proceeds of future crude sales, remains in place.The compromise ends the most costly deals.

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