* Southern oil will keep flowing through Sudan - Bashir
* Both need cross-border oil flows to stabilise economies
* Mistrust remains deep between neighbours
(Recasts with Sudan keeping oil flowing, adds quotes, details)
By Khalid Abdelaziz
KHARTOUM, Sept 3 Sudan lifted a threat to block
oil exports from its old enemy South Sudan, as the leaders of
the African neighbours met on Tuesday and promised to end their
The countries have fought over disputed territory and
accused each other of fuelling rebellions in their territories
since the South declared independence from Sudan in 2011.
Under international pressure to reach a deal and boost
stability in a fractured region, South Sudan's President Salva
Kiir and his Sudanese counterpart Omar Hassan al-Bashir held a
one-day summit in Khartoum.
At the start of the meeting, Bashir and Kiir said they would
honour all the bilateral agreements they had already signed.
"The agreements we signed call for the transport of South
Sudan's oil through Sudan's facilities and ports," Bashir said
Sudan had earlier this year threatened to stop the
landlocked South shipping oil through its territory by Friday
unless Juba cut ties with rebels operating across their almost
2,000-km (1,300-mile)-long shared border. South Sudan denies
supporting the insurgents.
A shutdown would have cut off South Sudan's main source of
government income - and robbed Khartoum of the export fees it
needs to stabilise its economy reeling from the loss of most
crude reserves with the southern secession.
The oil exports, mainly bound for Asia, had only resumed in
April after the South itself closed the pipelines for 16 months
during a dispute over those fees.
"A NEW PAGE"
Both countries have signed several agreements over recent
years to overcome their disputes, but the pacts have been
undermined by deep mutual distrust.
"We want to leave the problems of the past behind us and
open a new page for the benefit of the two people," Bashir told
journalists. But he again said any Southern support of rebels
would have to stop.
Kiir also said he wanted a new chapter in bilateral ties and
open the joint border for trade, a move agreed in September but
not implemented by Sudan due to Juba's alleged rebel support.
"You closed the border. We didn't do that but we're ready to
reopen it within 24 hours," Kiir said, during only his second
visit to Sudan since the split. He again denied backing rebels.
Bashir and Kiir also signed an agreement to boost
cooperation of business people from both countries.
South Sudan produces around 200,000 barrels a day, diplomats
say, less than the 300,000 bpd before the oil shutdown as it
takes time to restart hundreds of wells. Its oil fields are
mainly operated by Chinese, Indian and Malaysian firms.
South Sudan seceded under the terms of a 2005 peace deal
with the Khartoum government that ended one of Africa's longest
civil wars. Around two million died in the decades-long conflict
fuelled by religion, oil, ethnicity and ideology.
(Reporting by Khalid Abdelaziz and Ulf Laessing; Editing by