Gulf Oil and Gas accountACCOUNT

South Sudan in Ethiopia-Djibouti Oil Pipeline Deal

Source: BBC News 2/9/2012, Location: Africa

Share |
Landlocked South Sudan has signed a second oil pipeline deal in a bid to reduce its dependence on Sudan - amid a deepening oil crisis. The only export route for southern oil - which makes up 98% of its budget - is via its northern neighbour. The latest plan is to build a pipeline to the port of Djibouti on the Red Sea via neighbouring Ethiopia.

South Sudan last month stopped production in a transit fees row and accused Khartoum of stealing its oil. A memorandum of understanding was signed during talks in the Ethiopian capital, Addis Ababa, earlier this month, South Sudan's Minister for Information Barnaba Marial Benjamin told the AFP news agency. Chinese, US and European companies have shown interest in carrying out feasibility studies, Mr Benjamin said.

Djibouti - on the Gulf of Aden at the entrance to the Red Sea - is at least 1,000km (625 miles)away from South Sudan's oil fields, and crosses remote, difficult terrain where South Sudanese and other militia groups operate. Last month, South Sudan's government signed a deal with Kenya to link its oil fields to the port of Lamu. Industry analysts say such a pipeline would usually take at least three years to build and cost up to $4bn (2.6bn).

South Sudan and Sudan - who fought a bitter civil war for decades and split in July - remain at loggerheads, especially over oil on which both countries depend almost entirely for their revenues. The south has the bulk of the oil - but the north has the pipeline, refinery and the export terminal at Port Sudan on the Red Sea. They have never agreed on the transit fees that the south should pay Khartoum for pumping oil through its pipelines and using Sudan's oil export infrastructure.

President Salva Kiir of South Sudan recently accused Sudan of stealing crude oil worth $815m (518m). Khartoum has admitted to confiscating some for unpaid fees - prompting South Sudan to halt all production. President Kiir said his nation would rather struggle for a bit than continue to hand over its oil revenues to the old enemies in Khartoum. Fresh talks over the oil crisis are scheduled for Friday in Addis Ababa.

Pipe Lines Installations News in Sudan >>

Algeria >>  1/19/2018 - Cepsa, Sonatrach and Alnaft, the National Resources Development Agency of Algeria, have signed a new concession contract for the operation of the Rhou...
Algeria >>  1/15/2018 - Eng. Mustafa Sanalla, NOC Chairman of the Board, Dr. Abdelmomen Weld Qadour Chairman and General Manager of Sonatrach Company and Mr. John W. Wallace ...

Egypt >>  1/11/2018 - ADES International Holding Ltd. (ADES), the London-listed company providing offshore and onshore oil and gas drilling and production services in the M...
Egypt >>  1/3/2018 - Siemens Gamesa Renewable Energy (SGRE) has secured a new order for the installation of 125 of its G97-2.1MW turbines (total capacity of 262.5 MW) at t...

Gabon >>  1/3/2018 - Spectrum, in collaboration with the Direction Generale des Hydrocarbures (DGH), has commenced the next phase of its shallow water 3D Multi-Client seis...
Egypt >>  12/27/2017 - The Minister of Investment and International Cooperation Dr. Sahar Nasr signed an agreement worth USD 200 million with Director of Natural Resources a...

Related Categories: Civil Works  Civil Works - Finishing works  Construction Contractors  Electrical Works  Engineering Procurement and Construction (EPC)  Engineering Procurement and Construction Management (EPCM)  General  Mechanical Works  Pipe Lines Installations  Steel Works 

Related Articles: Civil Works  Civil Works - Finishing works  Construction Contractors  Electrical Works  Engineering Procurement and Construction (EPC)  Engineering Procurement and Construction Management (EPCM)  General  Mechanical Works  Pipe Lines Installations  Steel Works 


Sudan Oil & Gas 1 >>  2 | 3 |

Oil & Gas Projects in Sudan >>

More News

 

Oil & Gas Companies in Sudan >>


Related Links

AO BJ BW CD CG CI CM DZ EG EH ET GA GH GM GN GQ GW KE LR LY MA MG ML MR MZ NA NE NG RW SC SD SL SN SO ST SZ TD TN TZ UG ZA ZM
Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Privacy Policy.