The Sudanese government announced that oil began to flow through pipelines extending to Port Sudan, the independent Sudan Tribune reports.
South Sudan gained control over the bulk of the oil reserves when it gained independence from Sudan in 2011. Sudan controls the exports pipelines, however, and disputes over transit fees prompted the South Sudanese government to halt oil production in 2012. South Sudan gets nearly all of its revenue from oil.
The U.S. Embassy in Khartoum published a statement welcoming the resumption of oil production from South Sudan. The agreement do to so is part of a bilateral deal reached in Ethiopia in September.
"We welcome the spirit of cooperation between Sudan and South Sudan and urge the leadership of both countries to continue the full and immediate implementation of the agreements," the statement read.
Sudanese government spokesman Barnaba Marial said production from the Heglig area along the shared border was expected to follow last week's start from the Tharjiath oil field in Unity state in South Sudan, the Sudanese newspaper reports.
Disputes over Heglig nearly pushed both sides to war last year.