Washington / Khartoum, Sep 28 (IANS): US President Barack Obama and Secretary of State Hillary Clinton Thursday welcomed the agreement reached by Sudan and South Sudan on a number of outstanding issues that roiled ties between the two neighbours.

"I welcome the historic agreement that was reached today between the Republic of Sudan and the Republic of South Sudan on a number of critical issues," Xinhua quoted Obamaas saying.

"This agreement breaks new ground in support of the international vision of two viable states at peace with each other, and represents substantial progress in resolving the outstanding security and economic issues between Sudan and South Sudan," he noted.

The agreement was inked by Sudanese President Omar al-Bashir and his South Sudanese counterpart Salva Kiir Thursday, following their four-day intensive talks in the Ethiopian capital of Addis Ababa. It covered resumed oil exports by the South through Sudan and the establishment of a demilitarisd border buffer zone.

Despite a Sep 22 deadline set by the UN Security Council (UNSC) for a comprehensive deal, the two sides failed to settle disagreements on at least five disputed oil-producing regions along their border.