JUBA South Sudan's President Salva Kiir said on Monday Sudan had refused to accept routing southern oil exports through its territory after making "impossible" demands.
Khartoum had demanded South Sudan needed to disarm rebels fighting the Sudanese government as a condition, Kiir told government officials in Juba.
"It is an impossible mission which our brothers in the government in Khartoum would want us to undertake. Because of this, Khartoum authorities have refused to accept passage of South Sudan oil through their territory to market," he said.
(Reporting by Hereward Holland; Writing by Ulf Laessing; editing by Jason Neely)