"This is defininitely something to be happy about, this is the first agreement the two countries ever made since the separation which is satisfactory to both sides. It's the beginning of reconciliation and developing good neighbourly relations," Sabir Hassan, head of Sudan's economic negociation team, told the Financial Times' Katrina Manson on Saturday.
South Sudan seceded from its northern neighbour in July last year, but unresolved issues over the border led to continued fighting and disagreement over transit fees paid by the South to export crude out through the north to Port Sudan. The South switched off the taps in April effectively closing the door on virtually 98% of its revenue.
And yet life in South Sudan seemed to continue as if nothing had happened. By July, local businesses were reporting record sales and foreign investors continued to line up to get a foothold in the world's newest country. Sources close to Warrior reported a surreal feeling that either people were ignoring the inevitable, or that an unknown agenda was in place, bolstered by a belief that China and other key players would step in to support their commitment to the country, and perhaps the knowledge that the oil negotiations were simply an exercise in brinkmanship, and that both sides would ultimately not risk the first real opportunity of peace in 25 years.
Despite this latest breakthrough, the border conflict remains unresolved, although Thabo Mbeki, former South African president and African Union mediator said the two presidents would meet after the end of Ramadan, and announced an extended deadline of 22nd September to work on outstanding issues.