Sudan's President Omar Al Bashir (L) and South Sudan President Salva Kiir (R) shake hands The leaders of Sudan and South Sudan have final signed a co-operation agreement, a day later than their original deadline given by the UN, after five days of lengthy talks in Addis Ababa, Ethiopia. The breakthrough was reached late on Thursday , including agreements that built on an oil deal last month, to ensure the resumption of oil exports after a stoppage crippled the economy of both nations.
The agreement included progress on a financial package of some $3 billion that Juba has offered Khartoum, in compensation for Sudan's loss of key oil fields when the South broke free in 2011. The details, however, were not immediately released.
The two sides agreed on a demilitarised border buffer zone, where troops must withdraw 10km from the de facto line of control along the disputed frontier.
The buffer zone is also designed to cut support for rebel forces in South Kordofan and Blue Nile regions, which Khartoum accuses Juba of backing, just as the South accuses Sudan of arming rebels in its territory
Protracted talks under African Union mediation began in Addis Ababa several months before South Sudan split in July 2011 from Africa's biggest country, following an independence vote after decades of war.
President Barack Obama has welcomed the agreement signed Thursday in Addis Ababa between Sudan and South Sudan, describing it as a “historic" one.
The US President said: "This agreement breaks new ground in support of the international vision of two viable states at peace with each other, and represents substantial progress in resolving the outstanding security and economic issues between Sudan and South Sudan."
Both countries received praise and congratulations on their newly formed agreement from the European Union, British Foreign Secretary William Hague and United Nations Secretary General Ban Ki-Moon.
"These agreements provide vital elements in building a strong foundation for a stable and prosperous future between the two countries" said Mr Ban's spokesperson.
The UN Secretary General further commended Presidents Omar al-Bashir of Sudan and Salva Kiir of South Sudan "for demonstrating the statesmanship that made a comprehensive agreement possible, and for having once again chosen peace over war.
"The Secretary General calls on both governments to find solutions to the future of the disputed and claimed areas and the final status of Abyei" the statement said.
"He urges both countries to now embark on the implementation of the agreements they have signed and to finalise the processes they have initiated."
The UN Secretary General spokesman said that a ministerial level meeting on Sudan and South Sudan will be held later Thursday at UN Headquarters in New York, on the sidelines of the 67th UN General Assembly session.