Home | News    Friday 10 February 2012

South Sudan enters discussions with Djibouti over alternative pipeline route

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By Ngor Arol Garang

February 9, 2012 (JUBA) - South Sudan on Thursday said it has started talks with the Djibouti government to build an alternative oil pipeline through Ethiopia and Djibouti; weeks after the cabinet of the new nation passed a resolution shutting down oil production over a transit fee dispute with north Sudan.

Juba accused neighbouring north Sudan of stealing it’s oil, while Khartoum said it had taken the crude as payment in kind for $1 billion of unpaid fees.

South Sudan officially became an independent nation last July in line with the 2005 peace deal, which gave the region the right to self determination.

Since secession landlocked South Sudan had been unable to agree how much it should pay it northern neighbour to use it’s infrastructure to refine and pump Nile crude to the Red Sea’s Port Sudan enabling it to reach international markets.

Talks held under mediation of the African Union High Implementation Panel (AUHIP) have failed to bring the sides together.

Khartoum demands $32.02 per barrel but Juba is only willing to pay around $1 and says it would better allow the oil “remain underground” to benefit the next generation rather than to pay above normal international charges.

Marial Awuou Yol, South Sudan’s deputy finance minister on Thursday said Juba was exploring all possible alternatives to construct an alternative route to the neighbouring countries.

“We have already signed a memorandum of understanding with Ethiopia and Djibouti. We do not want to put all our eggs in one basket," Yol told reporters.

The official said the construction of the pipeline would be funded by a consortium of companies.

Analysts say the pipeline will take far longer than the 10 months estimated by the South Sudanese government and point out that unless more oil is discovered building a new pipeline is unlikely to be financially viable.

The landlocked new nation signed a similar deal with Kenya in January, days after the council shut down the oil production operation. A consortium of both national and international companies including Toyota group have already started a feasibility study into building a pipeline through Kenya.

(ST)

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  • 10 February 2012 07:36, by backtoschool

    thanks government of South, enjoy your struggles for the period spent in the bush, you fought for freedom and future.

    repondre message

    • 10 February 2012 07:58, by Darkangel

      I hope Sudan asks Djibouti to charge S Sudan $50 pd loool
      It looks like the GOSS is so desperate its begging everyone, countries, companies agencies ... but they all know the facts. It WONT work, you have no choice but Sudan. Ha Ha Ha Ha HA

      I thought the building was started 4 weeks ago !!! Hello Pagan, where is your claim NOW. No company, no country, no offer just signing MoU (wont build it)

      repondre message

      • 10 February 2012 08:49, by Letigolight

        Darkangel,

        The more time you spend wishing South Sudanese misfortunes, the more opportunities: pipelies to port Lamu, to Djibouti that already serves as United States naval base and successes. I wish you heart attack on seeing us thriving and finally, the gallows!!!
        I am happy South Sudan is taking positive steps to isolate Sudan - joining United States and Kenya including so many free countries!

        repondre message

        • 10 February 2012 08:55, by Darkangel

          HA HA HA HA HA AHA AHAHAHAHA

          Stop it im crying - "free countries" - what a joke. All these countries are slaves to American interests and American interests are slaves to Zionist companies and corporations. That’s how the world goes round my ignorant friend. Spare me - your freedom speech’s, thats what the Americans tell people of countries they deem enemies.

          repondre message

        • 10 February 2012 08:58, by Darkangel

          I have nothing against the Southern Sudanese peoples. I feel sorry for them, i wish them the best. My criticism is towards GOSS/SPLM corrupt, low lives telling people they are democratic and free and the ’Free World’ lying about it. Its all a facade of lies !! People like Pagan and die hard SPLM nuts on this propaganda website that have an agenda and no idea separating truth from reality.

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          • 10 February 2012 10:54, by Darkangel

            Your drunk, corrupt and incompetent government ministers want us to believe they want to build a pipeline over the ethiopian mountains ? Do they take us for fools. Someone should educate these barbarians on economics. Keep dreaming on the pipeline, Sudan will be waiting.

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      • 11 February 2012 07:32, by Oromo John

        DarkAngel, you seems to be so naive to laugh when you see your friend is struggling, but we Southerners must let you know this. a nation with it’s resources will not be mock by a hooligan like you. despite more MoUs, everyday is a day of discovery. Shut up you have no part to Share. you are just A PUPPET OF Khartoum,we wish Khartoum the best with Economic Crisis, BYEBYE MUDUKURU!!!!!

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    • 10 February 2012 13:38, by Waucity

      The same muslims, the same arabs and way closer to somalian people islams, don’t even think about it...Kenya or Uganda is good, please decide where the pipeline is going to be already instead of running around with message...I hate this.

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    • 10 February 2012 16:24, by Anti Traitor

      I have noticed the following:-
      1. oil w

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  • 10 February 2012 07:47, by Wal P Muoranyar Biet

    Good job, good job GOSS. Dr. Nafie got it wrong. We have not ran out of cards. South Sudan have many cards it can use to ensure success of this nation, and this is one of the million cards South Sudan has. All who ill-wish us need to get it right.

    Wal Peter Muoranyar Biet

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  • 10 February 2012 07:49, by molana

    a lot discussions, action speak louder than word, come on take action

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  • 10 February 2012 07:59, by BM Bol

    The countries South Sudan is talking to are sovereign states and with their own laws and interests. The point is a lot of talking is needed in order for actions to follow suit.

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  • 10 February 2012 08:07, by Joseph Canada

    what happen to Kenya? don’t you think you have to pay the transit fee for two countries? we ship most of our goods from lamu. what happened?

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  • 10 February 2012 10:08, by John

    I don’t think any country will turn down the deal to allow pipeline go through her land, as the country will be benefited.

    So, rather than signing memo with different countries, why not figure out the way to finance the pipeline.

    No doubt, if there is enough money, the pipeline can either go north directly to Europe or go south to South Africa without a single object from countries pass through

    repondre message

  • 10 February 2012 23:14, by AAMA

    Since SS is independent now, they should look after their interest and if they can’t agree with Sudan on pipeline fees then it’s better to build a new one and diffuse any future quarrel. The most important thing is that the goss remember that the south oil should be utilized efficiently to educate the ppl and build the nessecary infrastructure as it will run out in due course.

    repondre message

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