Business
South Sudan seeks to alternative pipeline through Uganda and Kenya
Plans to construct a pipeline to transport South Sudan’s oil through Uganda and Kenya in a bid to reduce over-reliance on Sudan’s infrastructure are at an advanced stage.
According to a South Sudan official, Japanese company, Toyota, has been on the ground carrying out a feasibility study, and work could begin soon.
Pagan Amum, the ruling Sudanese People’s Liberation Movement (SPLM) party secretary-general and chief negotiator on the pending issues of the 2005 Comprehensive Peace Agreement with Sudan, also revealed that they were in discussion with the French oil company Total. Total, according to Mr Pagan, is keen on teaming up with Toyota to build the pipeline to Uganda.
“Theirs will come from Uganda and ours will will proceed to Kenya,” Mr Pagan said.
The decision comes in the wake of deteriorating relations with Sudan, with South Sudan accusing her northern neighbour of “stealing” its oil destined to potential buyers overseas and constructing a secret pipeline to divert her oil.
Over 75 percent of the crude oil Sudan exported before its split in July last year came from fields in the south, but most of the infrastructure has been in the north.
Even after independence, the two Sudans are yet to agree on a transit fee for the latter to use the pipeline that runs to the export terminal at Port Sudan along the Red Sea coast.
