Posts Tagged ‘oil pipeline’


By Ulf Laessing

KHARTOUM (Reuters) – South Sudan’s plans to build a pipeline to Kenya or Djibouti to end dependency on Sudan’s oil industry seems unrealistic in the short-term, showing the need to find a deal with Sudan over oil payments, a Norwegian minister said on Wednesday.

South Sudan is locked in a row with Sudan over oil payments because it needs to ship its crude through northern pipelines and a Red Sea port.

Last month, Juba shut down its entire oil output of 350,000 barrels per day after Sudan started seizing southern oil after both sides failed to agree on a transit fee.

Juba now wants to develop an alternative pipeline to Kenya or Djibouti to bypass Sudan.

But Norway’s Minister for Environment and International Development, Erik Solheim, said oil pipeline projects tend to take longer than planned.

“I see very few people in the international community who consider this feasible in the short-term,” Solheim told Reuters.

“A much more realistic option would be to find a settlement using the north-south pipeline in meantime while then you can consider a long-term solution,” he said during a visit to Khartoum.

Norway is advising Sudan and South Sudan on developing their oil industries.

Asked whether Juba would be able to build a pipeline to the Kenyan coast within 11 months as planned, Solheim said: “It’s a very optimistic assessment.”

Apart from Kenya, Juba has also signed a memorandum of understanding with Djibouti and Ethiopia to build another pipeline. No companies have been named yet for either project.

North and south resume talks sponsored by the African Union on March 3 but Solheim sounded sceptical on a breakthrough.

“Both sides say they are ready to compromise but there is not huge optimism,” he said, warning: “It’s a very serious issue for both sides, especially the south.”

South Sudan’s budget depends for 98 percent on oil revenues.

Positions of both sides are wide apart. The South wants to pay around $1 a barrel in transit fees, Khartoum demands around $36 a barrel plus back payments of $1 billion.

http://af.reuters.com/article/investingNews/idAFJOE81L0C720120222?sp=true

South Sudan in talks with Vitol to build small Refinery in South Sudan

Wed Feb 22, 2012 6:04am GMT

By Hereward Holland and Emma Farge

PALOUGE OIL FIELD, South Sudan/LONDON (Reuters) –

South Sudan is in talks with top oil trader Vitol to build a small refinery which would start producing in 2013, as it seeks to end dependency on Sudan, its oil minister said on Tuesday.

South Sudan took three-quarters of Sudan’s oil production when it became independent in July but has no refineries and needs to import petrol from Sudan or East African neighbours.

The landlocked country is in a dispute with Sudan over oil payments, as it needs to export its crude through northern export facilities. It has shut down its entire output of 350,000 barrels a day after Sudan started seizing southern oil for what it calls unpaid transit fees.

“We are expecting the first product in 2013,” Oil Minister Stephen Dhieu Dau told Reuters during a visit to Palouge oil field when asked about refinery talks with Vitol.

“They will use 10,000 barrels per day and the output will be 35-40 percent of the total so it will be 3,500 barrels per day initially and then we will develop it gradually,” he said.

South Sudan planned two more small refineries, he said without giving details.

Vitol’s Chief Executive Ian Taylor told Reuters talks have been held with Juba.

“The South Sudanese are interested themselves in creating some finished products which they don’t have much of. They have talked to us and not just us,” he said.

“They have got a problem with refining products on how to bring them in. What they’ve got is crude oil, sadly stuck in the ground,” he said.

http://af.reuters.com/article/investingNews/idAFJOE81L00A20120222

South Sudan accuses president of oil company of colluding with Sudan, expels 

Washington Post
JUBA, South Sudan — The head of the largest foreign oil company in South Sudan has been asked to leave the country over allegations he conspired with Sudan to steal the south’s oil, South Sudan officials said Wednesday. Liu Yingcai, a Chinese national 

South Sudan expels Chinese head of main oil firm
MSN Malaysia News
South Sudan has expelled the Chinese head of the country’s largest oil firm Petrodar on charges of colluding with former civil war foe Sudan to “steal” millions of barrels of its oil, a minister said Wednesday. “It is the first time in South Sudan’s 

South Sudan Kicks Out President of Oil Company
WNCT
By: MICHAEL ONYIEGO | AP JUBA, South Sudan (AP) The head of the largest foreign oil company in South Sudan has been asked to leave the country over allegations he conspired with Sudan to steal the south’s oil, South Sudan officials said Wednesday…

South Sudan Expels Petrodar Executive
Wall Street Journal
By NICHOLAS BARIYO KAMPALA, Uganda — South Sudan has expelled the head of Petrodar, the country’s largest oil producer and pipeline operator, accusing him of covering up the theft of oil by Sudan. Liu Yingcai was ordered to leave South Sudan within 72 

Reuters Africa
By Hereward Holland PALOUGE OIL FIELD, South Sudan (Reuters) – South Sudan has expelled the head of Chinese-Malaysian oil consortium Petrodar, the main oil firm operating in the new African nation, a top southern official said on Tuesday, escalating a 

South Sudan expels head of Chinese-Malaysian oil firm
Yahoo!7 News
South Sudan has expelled the head of Chinese-Malaysian oil consortium Petrodar, the main oil firm operating in the new African nation, top southern officials said on Tuesday, escalating a row between Juba and Chinese oil firms. South Sudan has attacked 
South Sudan Welcomes London Court Ruling on Disputed Oil Cargo
BusinessWeek
21 (Bloomberg) — South Sudan welcomed the ruling by a London court to withhold payment for a cargo of crude until ownership of the oil was settled with neighboring Sudan. The ruling was a “positive thing” because it means that Sudan will not receive a 
Struggling Sudan consumers warn of unrest
AFP
Prices soared in recent months while the currency fell in value after the economic shock of South Sudan’s separation in July. The South took with it 75 percent of Sudan’s oil output, which accounted for the vast majority of Khartoum’s export earnings 

AFP
New railway line to link Uganda to Tanzania and South Sudan
Daily Monitor
The planned railway line from Tanzania through Uganda to South Sudan is expected to become Uganda’s second direct link to the coastline, the minister of Works and Transport has said. Eng Abraham Byandala told Daily Monitor that the proposed 

South Sudan: Japanese engineers join UN mission to build roads and bridges
UN News Centre
A Japanese engineering contingent has arrived in South Sudan to join the United Nations peacekeeping mission in the young country and help build roads and bridges in areas with very little basic infrastructure. The group of 120 engineers from the 

South Sudanese, please stop harassing aliens
Sudan Tribune
By Isaiah Abraham February 21, 2012 — After independence of South Sudan from the Republic of the Sudan six months ago, the people of the South (say some) have started to misbehave towards other non-South Sudanese or foreigners on the ground that they 

UNAMID chief seeks to enlist Juba’s help to promote Darfur peace accord
Sudan Tribune
February 21, 2012 (JUBA) – The head of the African Union–United Nations mission in Darfur (UNAMID) Ibrahim Gambari met today with South Sudan President Salva Kiir to discuss with him ways to strengthen of the Darfur peace accord signed less than a year 
 South Sudan: Japanese engineers join UN mission to build roads and bridges
Middle East North Africa Financial Network
Feb 22, 2012 (M2 PRESSWIRE via COMTEX) — A Japanese engineering contingent has arrived inSouth Sudan to join the United Nations peacekeeping mission in the young country and help build roads and bridges in areas with very little basic infrastructure.

South Sudan: Emergency Appeal
SOS Children
In recent months, the relationship between recently-divided Sudan and South Sudanhas deteriorated. This has led to outbreaks of violence, with thousands of families and unaccompanied children fleeing from South Sudan to Khartoum, the capital of Sudan.


SOS Children
Eight19 deploys IndiGo off-grid PV systems in South Sudan
solarserver.com
On February 21st, 2012 Eight19 Ltd. (Cambridge, UK) announced that it has begun deploying its pay-as-you-go IndiGo off-grid solar photovoltaic (PV) solution in South Sudan, in partnership with NGO WorldVenture (Littleton, Colorado, US)…

COLUMN-Threat to economy could force IEA to release oil: Kemp
Reuters
Confrontation with Iran and a series of supply disruptions in South Sudan, Syria and Yemen have pushed prices back to levels that derailed the recovery in the United States and Europe last year, and could do again in the first half of 2012…

US troops stationed in 4 Central African countries in fight against LRA rebel 
Washington Post
Rear Adm. Brian L. Losey, the top US special operations commander for Africa, said the US troops are now stationed in bases in Uganda, Congo, South Sudan and Central African Republic. “We’ve already seen a decrease in the lethality of LRA activities, 
Humanitarian crisis grows in Sudan
OneNewsNow
Sudan (MNN) ― In the region where Sudan and South Sudan’s borders touch, there’s an eerie familiarity in crisis. An ethnic cleansing has created a humanitarian problem, and the picture revealed bears resemblance to the tragedy of Darfur.
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By JEFF OTIENO 

Posted  Saturday, February 18  2012 

The South Sudanese have said they want a pipeline up and running within 18 months.” Umeme senior spokesperson Charlotte Kemigyisha

The South Sudanese have said they want a pipeline up and running within 18 months.” Umeme senior spokesperson Charlotte Kemigyisha

Countries expected to benefit from the construction of the Sh21.5 billion ($253million) Lamu-Southern Sudan-Ethiopia Transport (LAPSSET) Corridor will have to foot part of the budget, it has emerged.

There is fear that some parts of the project, among them, a highway, a railway line, a pipeline and a port, might delay, or even stall, if benefiting countries do not commit funds from their national budgets.

To minimise financial difficulties, the LAPSSET master plan report proposes that Kenya, South Sudan and Ethiopia share part of the cost, even as they seek donor funding. The plan report also acknowledges that some of the projects might not be completed on time if funds are unavailable.

Possibility of undertakings of the public infrastructures depends entirely on fund and budget availability and proactive involvement of the government of Kenya, said the report. President Kibaki will conduct the groundbreaking ceremony of the multimillion-dollar project, on March 2. Prime Minister Meles Zenawi of Ethiopia and Salva Kiir of South Sudan are expected to attend the function. The ceremony will mark the commencement of the construction of the Lamu port.

LAPPSET is expected to enhance regional trade, not only linking East African countries by making movements of goods and services easier, but also opening up sections of the hinterland that have remained underdeveloped due to poor infrastructure.

The report acknowledges that since the cost of the project is comparatively large compared to Kenya’s past Gross Domestic Product (GDP) and national budget, co-operation of neighbouring countries is indispensable in the construction of the Lamu port, railway and highway.

Though construction of oil refineries and resort cities are usually made through private investment, the report proposes that part of the investment be borne by neighbouring countries that will benefit from LAPSSET.
It suggests that Southern Sudan help fund crude oil pipeline, and both Southern Sudan and Ethiopia give Kenya a helping hand in the construction of an oil refinery, under the coordination of the LAPSSET Corridor Authority.

Already a high level delegation from South Sudanese has visited Kenya and held discussions with government officials on the construction of the 1,715 km crude oil pipeline.
Initially South Sudan had planned to finance the construction of the whole pipeline, with Kenya granting the right of passage. However, Kenya’s role is expected to be much broader given its experience in construction and expertise in maintaining an oil pipeline.

The urgency to construct the pipeline increased after South Sudan announced that it no longer intends to export its crude oil through Northern Sudan. Africa’s new nation wants the pipeline (1,288 km long in Kenya, 427 km in Southern Sudan) with a capacity of 500,000 barrels per day be built within 18 months.

Part of the crude oil — 417,600bbl/day — is to be exported from Lamu Port. Crude oil exporting pipelines are planned from the Lamu Tank Terminal located to the north of the Lamu Port to the two Single Point Mooring Buoys (SPMBs) at the outer channels through Pate Island, adds the report.

Another pipeline, for refined oil (diesel 52 per cent, kerosene 29 per cent and gasoline 12 per cent), with a capacity of 82,400 bbl/day will also be constructed.

http://www.theeastafrican.co.ke/business/Lamu+project+cost+to+be+shared/-/2560/1330198/-/t95h1kz/-/

Lamu abuzz with construction as South Sudan seeks new pipeline

By JAINDI KISERO  Posted  Saturday, February 11  2012 at  15:53

A high level delegation from South Sudan has been in Kenya through the week to initiate negotiations with over rights of passage for the 2,000 kilometre crude oil pipeline the country has decided to build to connect its oil fields to the Kenyan coastal town of Lamu.

Initially, Juba said it would be building the pipeline on its own at an estimated cost of $3 billion, with Kenya’s role limited to granting right of passage. But it appears that as the negotiations progressed last week, Juba realised that the scope of co-operation with Kenya on the project will have to be much broader to leverage the latter’s experience in executing large pipeline projects.

The climax of these preparations will be a groundbreaking ceremony to be conducted by President Mwai Kibaki on March 2 that will mark the start of the construction of the Lamu port. Ethiopian head of state Meles Zenawi and President of South Sudan Salva Kiir are among the dignitaries expected to attend the ceremony.

Last week, the joint implementation committee leading the negotiations expanded the terms of engagement. The parties will be negotiating terms and the role that Kenya can play in project execution support and management of the pipeline when it is fully operational. The joint committee is also negotiating issues such as immigration, transit fees, and provision of security for the pipeline
Last week, the negotiating party agreed to appoint a transaction adviser to advise on what are turning out to be complex negotiations.

With the government in Juba having decided that it will no longer export crude oil through North Sudan, the need for an alternative route to the sea is now more urgent than it has ever been for South Sudan.

The South Sudanese have said they want a pipeline up and running within 18 months.

Whether this is possible is debateable. But it is noteworthy that China Engineering Pipeline Corporation (CPPEC), the Chinese contractor working with the state-owned Kenya Pipeline Company, only recently completed building a 400-kilometre pipeline between Nairobi and Eldoret in a record 18 months.

Insiders have told The EastAfrican that due to the urgency with which Juba wants a pipeline, the plan is to have multiple contractors building different sections of the 2,000-kilometre pipeline.

For Kenya, the souring of relations between Juba and Khartoum offers not only a great opportunity to boost its geostrategic significance as the hub of economic activity in the region, but also an opportunity to achieve its dream of acquiring a second transport and economic corridor. Deepening economic relations with South Sudan and Ethiopia will counterweigh the heavy dependence that Kenya currently has on Uganda and Tanzania in the region.

Right now, Kenya only has one transport and economic corridor, the Northern Corridor, starting from the port of Mombasa to Malaba on the border with Uganda and onwards to Central Africa. A second corridor is critical for Nairobi as Kenya wants to access Ethiopia and South Sudan through northern and eastern parts of the country from the new port of Lamu.

Kenya’s ultimate aim is to extend the transport corridor to Kigali all the way to Douala in Cameroon. This will spawn a deeply inter-connected economic zone straddling the Nile Basin countries that will not only overshadow the ambitions of the East African Community, but whose future will be shaped by regional trade in oil, gas and electricity and the need to access the Indian Ocean.

Indeed, the battle over pipelines and access to the sea between Khartoum and Juba has broken out just when Kenya is in the middle of implementing its second corridor project.

A major project estimated to cost $15 billion, it has multiple parts including the Lamu port itself, and a railway line and fibre optic cable running from Lamu to South Sudan and Ethiopia through Isiolo.

The scope of the second corridor project includes airports at Isiolo, Lamu and Turkana, a highway, an oil refinery at Lamu and resort cities. But until the South Sudanese came up the other day, the only project that was actually being implemented was the Lamu port.

Indeed, the scope of the second corridor project had been reduced to the building of three berths to handle bulk cargo, general cargo and a container terminal. The pressure by the South Sudanese was bound to alter the equation, speeding up the construction pace of the port.

Repairs to road connections to places like Malindi, Witu and Garsen are going on at a scale and pace never witnessed before. But the most dramatic is the work currently going on the port area itself.

The whole port area is a massive construction site, with contractors clearing bush and building road connections to the port area. The construction of water and sanitation services and installation of electric equipment has already started.

The contractors building the port office headquarters, a port police station, and car parks moved to the site late week.

Controversies

Implementation of the Lamu project has not been without controversy. A disagreement between the Ministry of Finance and the Treasury over the cost of the feasibility study almost scuttled the whole project. Well-connected individuals connived with land officials to allocate themselves land on the port area, with the intention of selling it to the government later at a huge profit. It has emerged that some of the landowners had even charged the property to commercial banks for huge advances.

The matter was only settled two months ago when the Cabinet resolved that all titles in the proposed site of the port be cancelled by decree and the land compulsorily acquired. What is clear is that the entry of the South Sudanese into the fray has now altered the stakes. Even with delays, the proposed Lamu port is set to be the region’s largest oil exporting port.

http://www.theeastafrican.co.ke/news/South+Sudan+comes+to+town+shopping+for+Lamu+pipeline/-/2558/1324704/-/item/1/-/lkurug/-/index.html

Tanzania plans a railway line to reach South Sudan

The project will help ease congestion at  the Dar es Salaam port. Picture: File

The project will help ease congestion at the Dar es Salaam port. Picture: File

By LEONARD MAGOMBA  Posted  Saturday, February 18  2012 at  16:12

Tanzania, Uganda, Burundi and Rwanda have reached a formal agreement to construct a multi-billion dollar railway network, which would also serve South Sudan and tap into the bloc’s growing trade.

The project, to commence in 2014, is expected to take three years and cost $4.7 billion.

This will run alonsgside the $3 billion Tanga-Arusha-Musoma-Kampala railway line that is expected to be completed by 2015.

Tanzania and Uganda signed an agreement with China Civil Engineering Construction Corporation to undertake a feasibility study and implementation of the project, which will be the main gateway of Mwambani Port in Tanga, Musoma dock and Port Bell in Uganda.

“We are expecting to handover the feasibility study by April while construction of the 880km railway line is expected to be completed by 2015.” the Chinese engineering firm managing director Wang Xiangdong said,

Mr Xiangdong said the railway line will be constructed to the 1,435mm, which is the standard gauge used in other countries and directed by both states.

The project will see Tanga and Musoma ports dedicated to handle cargo, traffic destined to Uganda and South Sudan. Beyond that the project will help to ease congestion at Tanzania’s principal’s port, Dar es Salaam.

Freight would be conveyed from Musoma by ferry to the Port Bell pier — about 350km of transportation in the lake. A rail connection already runs via Tororo to Gulu – nearly 600km – on the Pakwach branch.

A new line of roughly 250km would be constructed to Juba, and a further 550km to the Wao railhead in South Sudan.

http://www.theeastafrican.co.ke/business/Tanzania+plans+a+railway+line+to+reach+South+Sudan/-/2560/1330196/-/152eaqsz/-/


The economy of South Sudan, the world’s youngest nation, which draws 99 per cent of its income from oil, is set to grow as plans for a pipeline bypassing the north progress.

Construction on a pipeline allowing South Sudanese oil to circumvent the north could start by July, boosting the fledgling nation’s revenue and global oil supplies.

South Sudan has signed a memorandum of understanding with Ethiopia to build an oil pipeline running through Djibouti, and the government is in talks with a Texas pipeline construction company to start work in six months, said Barnaba Marial Benjamin, South Sudan’s information minister. He did not identify the Texas company.

The plan for a pipeline through Ethiopia is the latest floated by the South Sudanese government in recent months. Another plan envisaging a pipeline snaking through Uganda to the Kenyan coast was under consideration by companies including Japan’s Toyota and the French oil major Total, which holds exploration blocks in South Sudan.

“We had to look for alternative route for exporting the oil after we have reached a deadlock with Sudan, which is exaggerating in the oil transit fees,” Mr Benjamin told the Chinese state news agency Xinhua recently.

Khartoum and the southern capital, Juba, have been embroiled in a dispute over oil export payments since South Sudan gained independence in July.

South Sudanese oil reaches international markets by only one conduit: the Greater Nile Oil Pipeline, which runs through Sudan to a port on the Red Sea.

Khartoum wants US$6 (Dh22) for every barrel of oil transported through the pipeline, while Juba is willing to pay only $1 a barrel and says Khartoum should also provide it with $2.4 billion in financial aid and withdraw its troops from Abyei, a flashpoint region on the border between the north and the south.

Last month, South Sudan halted its 350,000 barrels per day (bpd) oil production.

The shutdown has squeezed global crude supplies in a time of reduced output from Yemen, Syria and Libya.

ayee@thenational.ae

http://www.thenational.ae/business/energy/south-sudan-pins-hopes-for-growth-on-pipeline
Sudan, South Sudan locked in contentious oil talks

Cape Town (Platts)–13Feb2012/510 am EST/1010 GMT

Sudan and its neighbor South Sudan are locked in talks on a dispute over oil revenues and transit fees in the Ethiopian capital Addis Ababa that have raised bilateral tensions and threaten to unravel a peace deal.

In a press release published in local media on Monday, Khartoum said Juba had discussed resuming exports through Sudan “as soon as the two sides reach a commercial agreement.”

The leaders of both countries failed to agree on a deal to end an oil dispute during the last round of talks, mediated by the African Union. Last month, the south cut off oil output after it accused the north of stealing $815 million worth of its oil.

Both Sudan’s President Omar al-Bashir and South Sudanese President Salva Kir have in recent days hinted that the two former civil war foes may be close to war.

As the dispute drags on, South Sudan last week signed a memorandum of understanding with Ethiopia to build an alternative pipeline to the port of Djibouti. South Sudanese Information Minister Barnaba Marial Benjamin was quoted as saying a Texas-based company could build the pipeline in six months.
South Sudan took three quarters of Sudan’s oil when it gained independence last July as part of a comprehensive peace agreement reached in 2005. But the south has little infrastructure and relies on northern pipelines to export its oil. Khartoum has demanded $32/barrel in transit fees while Juba has offered $1/b.

The two sides did sign a “treaty of non-aggression” on their disputed border Friday, chief negotiator of the Addis Ababa talks Thabo Mbeki, the former president of South Africa, told reporters.

According to the pact, the two sides agreed to show “respect for each other’s sovereignty and territorial integrity” and to “refrain from launching any attack, including bombardment.”

Negotiations between the two neighbors have been marred by eruptions of violence along the border, including in the contested Abyei and Blue Nile states.

–Jacinta Moran, jacinta_moran@platts.com

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/7197527

South Sudan pins hopes for growth on pipeline
The National
The economy of South Sudan, the world’s youngest nation, which draws 99 per cent of its income from oil, is set to grow as plans for a pipeline bypassing the north progress. Construction on a pipeline allowing South Sudanese oil to circumvent the north

South Sudan: Sexually Transmitted Infections: Tackling Taboo Illnesses On the
AllAfrica.com
Vicky Lawa, 29, from Nimule, South Sudan. Vicky found out she was HIV positive when she was pregnant with her son, Lucky Solomon, who is now three months old. (Photo Courtesy Emily Dugan/Merlin) Washington, DC — Valentine’s Day means red roses and

South Sudan race to compete at London Games
Reuters Africa
By Mark Gleeson LIBREVILLE (Reuters) – South Sudan, the world’s newest country, hopes to send athletes to the London Olympics but is racing against time to secure membership of various sporting federations and the IOC, the sports minister said on

Young Christians in South Sudan too afraid to go to Mass
Scottish Catholic Observer
He said the young men, many of them university students, are being forced to fight against the Government of South Sudan and the SouthSudan-based Sudanese People’s Liberation Army (SPLA). The newly independent, and mainly Christian, South Sudan broke

Sudan, South Sudan locked in contentious oil talks
Platts
Sudan and its neighbor South Sudan are locked in talks on a dispute over oil revenues and transit fees in the Ethiopian capital Addis Ababa that have raised bilateral tensions and threaten to unravel a peace deal. In a press release published in local

South Sudan welcomed as official CAF member nation
insideworldfootball (blog)
By Andrew Warshaw February 13 – Seven months after becoming an independent country following a bloody civil war, South Sudan has been admitted as the 54th member of the Confederation of African Football (CAF), paving the way for it to be named as the

South Sudan oil output stoppage drives up prices
Financial Times
But rather than looking at supply disruptions stemming from the Strait of Hormuz, they need to turn their eyes to South Sudan. The African country, which won independence from its northern neighbour last year, was until last month pumping about 260000

South Sudan – The Lasting Effect of Conflict on South Sudan’s Education System
Reuters AlertNet
JUBA, South Sudan/GENEVA, 8 February 2012 (LWI) – There is a hunger for education in South Sudan that is obvious wherever you go. Young people will travel hundreds of kilometers to attend school or university. Old people in the most impoverished areas

IDC students move to stop classmates’ deportation
Jerusalem Post
By Ben Hartman A group of students from the Interdisciplinary Center in Herzliya (IDC) has launched a Facebook campaign in a last-ditch attempt to stop the deportation of three classmates from South Sudan. The Facebook page, entitled “IDC Students

Khartoum signals optimism as oil talks with South Sudan starts
Sudan Tribune
February 12, 2012 (KHARTOUM) – Negotiations between the governments of Sudan and South Sudan over oil officially started on Sunday as Khartoum indicated a relaxation in Juba’s decision to halt production of the commodity. The talks were originally

President Al-Bashir describes South Sudan decision to close oil pipeline as
Sudan News Agency
12 (SUNA) – President of the Republic, Field marshal Omer Al-Bashir, described the decision of the government of South Sudan to close down the oil pipelines as sheer suicide, affirming that the government of Sudan will continue its plans for realizing

Sudan ‘Lost Boy’ speaks to Westborough students
MetroWest Daily News
Haroun Bakhit, a native of Sudan, speaks to students at Gibbons Middle School in Westborough on Friday. By Kelleigh Welch/Daily News staff Haroun Bakhit had nothing when he left his home in South Sudan in search of a better life. “We had no cars,

Fire in South Sudan’s Lakes state forest kills 12
Sudan Tribune
February 13, 2012 (RUMBEK) – The government of South Sudan’s Lakes state has reported that 12 people, were found dead on Saturday afternoon in the forest of Titagau payam [district] of Yirol East county. Yirol East commissioner, Bullen Bol Achinbai,

S. Sudan Parliament bans journalist
Sudan Tribune
February 12, 2012 (JUBA) – A journalist has been banned from covering proceedings in South Sudan’s national assembly, after an investigation committee allegedly found him guilty of violating the assembly’s code of conduct. Lawmakers who attended the

Food crisis in South Sudan can impact millions
Women News Network
Today regions in Sudan continue to be greatly impacted by drought and food shortages from effects of climate change and conflict. Image: UNphoto/Tim McKulka (WNN/UNNS): South Sudan, AFRICA: Two United Nations agencies warned last week that millions of


Energy PS Patrick Nyoike. Last Tuesday,  Kenya signed the oil pipeline and fibre optic deal allowing South Sudan build and own a pipeline through the Kenyan territory.  FILE

Energy PS Patrick Nyoike. Last Tuesday, Kenya signed the oil pipeline and fibre optic deal allowing South Sudan build and own a pipeline through the Kenyan territory. FILE 

By ZEDDY SAMBUPosted  Monday, January 30  2012 at  21:04

Kenya and South Sudan will form a joint commission to streamline plans for the construction of an oil pipeline between Juba and the port city of Lamu.

South Sudan intends to construct a pipeline through Kenya to export its crude oil while the government would build a refinery in Isiolo to process the crude for local use and export to countries like Ethiopia.

“We do not have the money to build the pipeline. South Sudan has said it will build it but it will be jointly managed by the two countries,” said Energy PS Patrick Nyoike.

The PS said a similar arrangement would be adopted for the planned refinery, possibly on a 50:50 basis.

Last Tuesday, Kenya signed the oil pipeline and fibre optic deal allowing South Sudan build and own a pipeline through the Kenyan territory.

“We will form a joint venture on the twin projects . We have a counterproposal from Toyota Tsusho Corporation to build several multi products to Lamu and Nakuru,” he said.
Another line is planned to deliver products to the border town of Moyale to be tapped by Ethiopia. A pipeline would also be built to connect to the oil fields in Hoima in northern Uganda.

Mr Nyoike said it was possible to complete the project in a year given that the 2,000-kilometre line from South Sudan oil fields to Port Sudan was laid in 18 months.

The refinery, pipeline and fibre optic cable are part of the Sh16 trillion Lamu Port and Southern Sudan-Ethiopia Transport Corridor project.

The project includes resort cities along the corridor and airports linked via a modern railway line.

The pipeline offers South Sudan an alternative route to transport oil, which accounts for 98 per cent of its revenues while opening up northern Kenya for development.

Toyota Tsusho Corporation is planning to build a 1,400-kilometre oil pipeline under Build Operate and Transfer before handing over control of the facility to the two governments after 20 years.

The pipeline would carry a projected 450,000 barrels of oil a day from Juba in southern Sudan to Lamu on the Indian Ocean.

The estimated cost of the pipeline is $1.5 billion dollars (Sh135 billion).

“The pipeline is a gateway to move Sudanese oil to the market including Kenya. Both the crude oil line and the refinery are urgent. Our plan is to deliver both at the same time,” said Mr Sylvester Kasuku, Infrastructure specialist at Kenya’s Office of the Prime Minister.

He said Kenya would earn transit fees in line with international best practice adding that preliminary works on other aspects of Lappset such as roads and port building have started.

Landlocked South Sudan exports roughly 350,000 barrels per day but has started shutting down production after talks collapsed with Sudan over transit fees and revenue sharing.

Sudan says South Sudan has not paid for use of northern export facilities since its independence and is demanding $1 billion in fees and $36 per barrel for the crude to be exported through Port Sudan.

In the event of exports through Port Sudan being blocked, South Sudan has said the country can survive on borrowing (using its crude as collateral) until a new export avenue is created.

http://www.businessdailyafrica.com/Kenya+South+Sudan+to+form+team+for+oil+pipeline+project++/-/539546/1317026/-/item/1/-/us053d/-/index.html


Constructing a New Oil Pipeline is impossible without Approval of SSLA and SSDA

South Sudan’s Rebel Groups Threatened to Prevent the Construction of New Oil Pipeline; Warned ‘Theaters of War’

SSLA’s Soldiers. Photo: BBC

For Immediate Release
SSLM/A Headquarters, Mayom, South Sudan
January, 25, 2012
The South Sudan Liberation Army and South Sudan Democratic Army want to alert members of international community and the people of South Sudan that the proposed construction of a new oil pipeline to Kenya may not take place due to insecurity in South Sudan. The SSLA and SSDA made their views clear to the White House, Kremlin, UK, Norway and Canada about the gambling being taken by the regime of Gen. Salva Kiir.

We want to state, in no uncertain terms, that SSLA and SSDA stand for the welfare of the people of South Sudan and do not condone any irrational imposition of unfair business dealings between the South and the North. SSLA and SSDA believe that the South should pay only international rate in order to export its oil through Port Sudan. Despite our position that both the North and the South should reach a reasonable agreement on transit fees in order to have brotherly relations, we strongly condemn the unilateral decision taken by Salva Kiir’s regime to initiate a policy of constructing a new pipeline without seeking approval from SSLA and SSDA which control most of rural areas where oil is currently being produced.

The SSLA and SSDA do not care whether the people of South Sudan decide to construct a new pipeline through Kenya provided that the decision to do so is widely accepted by various military and political forces of the country. On the contrary, the regime of Salva Kiir not only failed to consult the appointed parliament in Juba, but also refused to seek expressed permission from revolutionary forces of SSLA and SSDA which controlled rural areas of oil rich states of South Sudan.

It is our position that any major decision such as building a new pipeline needs expressed permission from revolutionary forces because failure to adhere to democratic procedure may result into military confrontation. Although SSLA and SSDA never attacked oil installations before because they are not fighting to cripple the South economically, we want to enlighten international community that the construction of the new pipeline will not take place on the ground because Salva Kiir did not consult the revolutionary forces prior to shutting down the oil.

We want to warn any oil company that will attempt to take part in the construction of the new pipeline to stay away from Unity State and Upper Nile because the SSLA and SSDA will never allow the construction of the new pipeline because the decision was taken without adherence to democratic principles. The SSLA and SSDA will soon launch Operation Ending Corruption which was delayed until the end of this month to allow the people of South Sudan to celebrate Christmas and New Year.

It is the position of SSLA and SSDA that construction of a new pipeline must take place unless approved by a democratically elected government, various political parties and revolutionary forces. The unilateral decision taken by Gen. Salva Kiir will lead South Sudan’s economy to complete shutdown. A country that depends on oil to survive cannot shutdown the oil production without alternative means to survive.

A wise decision taken after careful studies could get popular support in South Sudan in order to start building a new pipeline while using Port Sudan to export oil so that the South is economically capable to fund the construction of the new pipeline and to pay civil servants. South Sudan’s economy revolves around oil and the abrupt shutdown of the oil production will lead the entire country into a virtual standstill. Most private investors flocking to South Sudan did so because of the oil. Now that the oil is not any longer there, all foreign investors will run away. From economic perspective, the non-oil revenues that have been generated through tax come from trade with Kenya and Uganda. Now that oil does not exist, the Kenyan and Ugandan businesspersons will run away because the people of South Sudan have no alternative income to buy goods coming from their countries.

Had Gen. Salva Kiir consulted SSLA and SSDA, we would have told him that it is economically dangerous to shutdown the oil production and start building a new pipeline given primitive economy of South Sudan which depends on oil to build its infrastructure and institutions. What the regime of Salva Kiir did is economic suicide for South Sudan. A wise thinking brain can start building a new pipeline while using Port Sudan to export the oil in order to generate funds not only to sustain life in the South but also fund the construction of the new pipeline instead to rely on loans which have steep interests that will cripple the South with debts in the long run.

Therefore, the SSLA and SSDA warn oil companies not to take part in the construction of the new pipeline because Upper Nile and Unity State will be theaters of war between Salva Kiir’s regime and the revolutionary forces of South Sudan that are fighting to rescue the South from corruption. Within few days, fire will be burning everywhere in Unity, Upper Nile and Jonglei States to liberate the South from ruling tourists in Juba. It is a matter of time that Salva Kiir will migrate to Kenya where he bought two villas for his family.

For contact:
Information Department
SSLM/A Headquarters
Mayom, South Sudan