The African Union has demanded South Sudan withdraw its troops from the Heglig oilfield, in Sudanese territory.
Fighting has continued for a second day between Sudan and South Sudan in the disputed border regions.
The AU says it is deeply alarmed and called on both sides to exercise the utmost restraint.
Khartoum says it is withdrawing from negotiations with South Sudan and has complained to the UN and the AU about South Sudan's "aggression".
A military spokesman for South Sudan told the BBC his troops were coming under aerial bombardment north of Heglig.
'Destruction'
The BBC's James Copnall in Khartoum says that Sudan relies on the oilfield for a sizeable part of its budget.
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