Sudan Sets Sept. 6 Deadline to Allow Flow of South Sudan Oil

CAIRO, Aug 12 (Reuters) – Sudan will extend a deadline to allow the flow of oil from South Sudan until Sept. 6 in a move following mediation by the African Union to keep crude exports flowing, the Sudanese state news agency said.

"There will be an extension to the flow of South Sudan oil for two extra weeks until Sept. 6," it said.

Sudan, the sole conduit for South Sudan's oil exports, last month extended an Aug. 7 deadline two extra weeks. Sudan accuses South Sudan of supporting anti-Khartoum rebels operating across their border. South Sudan denies the claims.

The African Union has stepped up efforts to prevent the production shutdown, starting an investigation of the Sudanese allegations. Ethiopia also mediated between the former civil war foes.

South Sudan, which seceded from Sudan in 2011, relies heavily on oil exports for its economy and the shut down could have serious economic and political implications.

Closure of the pipelines would also hit the economy of Sudan, which needs South Sudan's payment of oil transit fees.

(Reporting by Khalid Abdel Azizi, Writing by Yasmine Saleh; Editing by Angus MacSwan)