AFP reported that China welcomed an oil deal between Sudan and South Sudan and urged both nations to find the political courage to overcome the remaining issues that have brought them to the brink of war.

Landlocked South Sudan had agreed to pay a pipeline transit fee of USD 9.48 per oil barrel to transport its crude through Sudan, a significant drop from Khartoum's initial demands of up to USD 36 a barrel in fees.

In addition, the country agreed to make a one off payment to Khartoum of some USD 3 billion to cover the massive financial gap created by the South's independence last year a fractious divorce that left a raft of issues unresolved.

Mr Qin Gang foreign ministry spokesman said that "We welcome the agreement reached by Sudan and South Sudan on the issue of the allocation of oil benefits. China calls on the two Sudans to find more political courage, cooperate with international mediation efforts, maintain the sound atmosphere and momentum for negotiation and resolve the remaining issues."

Mr Qin further praised the role of the African Union in brokering the Saturday deal and urged Juba to resume oil production as soon as possible.

Energy hungry China is the largest purchaser of oil from South Sudan, which proclaimed independence from Sudan in July 2012 and has had a longstanding relationship with Khartoum from which it also buys oil.

Since the two nations began slinking back toward war over the oil issues early this year, China sought to play a neutral role between both sides.