South Sudan to Export Oil by Road: South Sudan to Get Oil Out With Trucks
BY JENNY GROSS
LONDON—South Sudan is planning to export by road at least 10% of its 350,000 barrels-a-day crude oil production while alternative infrastructure is put in place, said Stephen Dhieu Dau, minister for petroleum and mining, without giving a time frame for when this would start.
The landlocked country, which sells its crude to refiners in China and Malaysia, has shut down its entire oil output amid a dispute with neighboring Sudan over oil-export transit fees, a move that has contributed to global oil prices in recent days hitting highs last seen in July 2008.
Mr. Dau said the government was planning …
http://online.wsj.com/article/SB10001424052970204276304577265441272378920.html?mod=googlenews_wsj
South Sudan to use trucks to export crude -WSJ
Tue Mar 6, 2012
* South Sudan plans to export 10 pct of output by road
* Plan to export by road not yet finalised
* Country in talks to finance pipeline through Kenya
March 7 (Reuters) – South Sudan, locked in a bitter row over oil transit fees with neighbour Sudan, plans to export by road at least 10 percent of its 350,000 barrels-a-day output until pipelines are ready, the Wall Street Journal reported on Wednesday.
Oil provides about 98 percent of South Sudan’s income and is vital to the impoverished country as it tries to develop infrastructure and institutions devastated by a war that killed an estimated 2 million people.
The government will use trucks to carry a minimum of 35,000 barrels a day of its output to Kenya’s coastal city of Mombasa and to the coast of Djibouti while pipelines in Kenya and Ethiopia are being built, the paper quoted the minister for petroleum and mining, Stephen Dhieu Dau, as saying.
However, the plan to export crude by land was not yet finalised, Dau said, and he gave no timeframe for its start.
South Sudan seceded last July under a 2005 peace agreement that ended decades of civil war with Khartoum. But peace remains uneasy at best, with north and south deadlocked over oil transit fees that have contributed to recent high global oil prices.
The landlocked new nation took control of about three quarters of the unified country’s oil output of roughly 500,000 barrels a day, but it needs to export its crude through northern pipelines to the Red Sea port of Port Sudan.
By June, South Sudan will reach an agreement with companies looking to finance an alternative pipeline in Kenya, Dau said.
The country is in talks with companies in China, Japan, Europe, South Korea and the United Stated about financing a pipeline running through Kenya and another through Ethiopia to Djibouti, he added, without naming the companies involved.
The Kenya pipeline would carry the Nile blend of crude, while the Ethiopia pipeline would carry the Dar blend, he added.
(Writing by Himani Sarkar; Editing by Clarence Fernandez)
http://mobile.reuters.com/article/idUSL4E8E70W020120307?irpc=932
South Sudan May Seek Loans to Cover Lost Oil Revenue, UN Says
South Sudan may seek commercial loans to compensate for revenue lost since it shut down its oil industry in January because of a dispute with Sudan, the head of the United Nations mission in the country said.
Hilde Johnson, the special representative of the UN secretary-general, said she has had discussions with government officials about how to cover the gap in lost revenue from oil, which accounts for more than 95 percent of the newly independent nation’s income.
“They seem to be leaning more towards loans than donor support, but it is too early to tell,” she told reporters today in Nairobi, the Kenyan capital.
South Sudan, which gained control of about 75 percent of the formerly united Sudan’s 490,000 barrels a day of output at independence in July, completed a shutdown of production Jan. 28. It took the action after accusing Sudan of stealing its oil. Sudan said it confiscated the crude to make up for unpaid fees.
Negotiations between the countries since independence have failed to yield an agreement on how much the landlocked south should pay to transport its oil through a pipeline across Sudan. The latest round of negotiations was scheduled to begin today in the Ethiopian capital, Addis Ababa.
“Unless an agreement is reached with Sudan that will allow for a resumption of oil production and exports, there is a risk that severe cuts will have to be undertaken a few months from now,” Johnson said.
While South Sudan may ask international donors to help make up the budgetary shortfall, there is no guarantee they would agree to provide funding, she said.
To contact the reporter on this story: Jared Ferrie in Nairobi at jferrie1@bloomberg.net
To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net
| South Sudan to use trucks to export crude -WSJ Reuters South Sudan plans to export 10 pct of output by road * Plan to export by road not yet finalised * Country in talks to finance pipeline through Kenya March 7 (Reuters) – South Sudan, locked in a bitter row over oil transit fees with neighbour Sudan, … |
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| South Sudan to Get Oil Out With Trucks Wall Street Journal By JENNY GROSS LONDON—South Sudan is planning to export by road at least 10% of its 350000 barrels-a-day crude oil production while alternative infrastructure is put in place, said Stephen Dhieu Dau, minister for petroleum and mining, without giving a … |
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