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South Sudan in talks with Texas Company on oil pipeline


February 8, 2012 (DALLAS) – The government of South Sudan is in talks with a Texas-based company to explore options for building an oil pipeline which would serve as an alternative to the one passing through the territories of Sudan.

According to South Sudan information minister Barnaba Marial Benjamin, the unidentified company could start working the project in as soon as six months.

He offered no further details.

The official further said that South Sudan had signed a memorandum of understanding with Ethiopia to construct an oil pipeline passing through Djibouti.

A source close to the Juba government said that Ethiopia’s Prime Minister Meles Zenawi gave his approval to the idea. It is not clear if Djibouti did the same yet. Eritrea is also an option on the table even though its president Isaias Afewerki has yet to respond.

Last week, the former Sudan oil minister Lual Deng said that exporting the oil through Djibouti would be a shorter distance than using the established pipeline going all the way from South Sudan to the Red Sea.

South Sudan minister said that Toyota Company has started feasibility studies on the Lamu pipeline project which was signed recently with Kenya.

The landlocked nation is currently involved in an escalating dispute with Khartoum over the payment of transit fees for its oil.

Negotiations between Juba and Khartoum, hosted by the African Union High-level Implementation Panel (AUHIP) have thus far failed to find a resolution.

Khartoum demands South Sudan pays $32 per barrel of oil that passes through its territory. Juba says it will only pay around $1 a barrel.

As talks on the fees dragged on the Sudanese government said it ran out of patience and can no longer tolerate South Sudan exporting its oil for free. As such it started taking part of the oil pumped by South Sudan to make up for what it called unpaid fees.

In response, South Sudan said last month it was shutting down its output.


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  • 9 February 2012 10:18, by Ambago

    As long as no further oil transits to Port Sudan, we can wait for another five decades. However all new deals must be transparent and be warned against foreign debts that may be misused for salaries or luxuries! It is time that All siphoned public funds are recovered if you want to remain in office till 2015. Your spoilt life styles will obviously need a strong austerity measures, so don’t forget

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    • 9 February 2012 12:02, by mohammed ali

      Ambago,why donnot you kill yourself instead of watching 4.7 starving to death and u just want to wait with your family & children safe in UK enjying the fruits of asylum and refugee status!Five decades there wont be oil in SS.I can assure 100% that there wont be a pipe-line after 10 decades not only 5 decades!Who will give $ 5-7 billions loan in this crippling financial crises, possible war....co

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      • 9 February 2012 12:14, by mohammed ali

        ..with north & ongoing brutal tribal wars & insecurity? Even if everything is ok who has money now to give " a high risk country" such alone? If you got the money how much will be the interest rate ? ..20% APR ?Feasability study alone will take one year, surveying the route and puting the design on paper will take at least one year, excuting the work & construction will take at least 3 years..con

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        • 9 February 2012 12:31, by mohammed ali

          ..port & storage facilities will take at least 18 months? Who will do this for the sake of dwidling 350,ooo bbd whis going going to dry up within 5-7 years?Lual Deng himself said it is not feasible, but now with the possibilty of getting comission, he changed his mind!If you put the fees for the transit fees u are going to pay plus interest rate & opportunty cost it will be more than $ 36 bbl day.

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          • 9 February 2012 19:16, by Abyei Soil

            I know English is not our language in the main time ya Mr. M. Ali but if you opted to use it as your communicative language you better put it correctly or you should’ve to understand first. You do not understood what is contained in the report, even if you think 5years and 18 months as you mentioned it will be spends in reference to the construction of new pipelines through either Lamu-Kenya or Dj

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            • 9 February 2012 19:18, by Abyei Soil

              ...or Djibouty is none of your business. It is ours and I thinks yours is to watch at South with salty tears in your eyes. Thanks for participating to the forum.

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        • 9 February 2012 16:07, by pabaak

          So called Mahomed Ali, "Galbek mat" or what? you always come up with dreams and delusion which show you a typical of NCP who live in dreams. whether 4.7 m or 12 million will starve is not your business. NCP were thinking they came to preserve Islamic values in Sudan but instead they become worst than unbelievers. stealing, lie, and all pathetic live styles, its a matter of time and you will

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          • 9 February 2012 16:08, by pabaak

            find yourselves in dust bin.

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      • 9 February 2012 12:55, by Logic

        M.Ali, Your blind loyalty to the NCP gov. is beyond a joke, Ambago was subliminally warning GoSS but you couldn’t resist but attack him. What is wrong with you, do you like to waste your intelligence for the sake of appearing patriotic. 4.7m are not starving but food insecure according to the report you’re wrongfully quoting. Do you understand the difference!!

        Wow, such a waste of a brain!

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      • 9 February 2012 13:00, by Logic

        S. Sudanese

        You guys should understand that the oil infrastructure in N. Sudan was built with the guarantees of the resources of the marginalized areas (S. Sudan, S. Kurdofan and Blue Nile), settle the asset issue first before disowning what is rightfully yours. Those cunning elite of the north are wolfs, don’t give them your backs.

        Wake up people, stop side stepping the real issues of Sudan.

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      • 9 February 2012 13:20, by Jay

        Ali, how long did it take you to build the current pipeline all the way to Port Sudan? Why is it that it’s going to take South Sudan 10 decades to build a pipeline? By the way, do you really know what 10 decades is?

        10 decades is a period of 100 years! Really, is the pipeline going to take South Sudan a hundred years to build? It’s ironic to have such a loud mouth and clueless!

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    • 9 February 2012 14:32, by Justin Chicago opiny

      The best option for south sudan now is reach an agreement with north sudan on the use of transit fee. North sudan should not be so greedy to over charge RSS as the pipeline and the refineries were built when the two sudan was together.We shared the oil 50/50 .why can’t we share the oil insfracture 50/50 and charge a minimal transit fee and not $32 per barell.

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  • 9 February 2012 10:32, by Padiet Deng Alony

    it remind of word that we use to say when we show arab in Juba. Mundukuri guang guang Kisira.the term mundukuri mean a person without land and running after food.now mundukuri is crying for food when we shut down thier life vien.

    The game is over no more deal with arab regarding oil.

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  • 9 February 2012 10:42, by Tambura

    One week ago they told us pipeline will take one year to build, but still now they didn t have deal with any company. You are lack of vision and leadership, south Sudan people are not fools as you think, we catch you one day.....

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    • 9 February 2012 13:31, by Anti Traitor

      I don’t mind longer period for construction of oil pipelines. This is because the longer the period the easier the corrupt officials will be wiped out of the government.
      So that the fresh oil will serve people a fresh start of development and freedom.

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  • 9 February 2012 11:01, by N.Sudan

    to southerners
    tell your government spla to accept the 32$ before you lost your time to find some one accept to drag him self inside hell to built a pipeline for you . bcz if the north find any other alternative income rather than your fees at that time you will start to kiss kenya’s butt for the rest of your life .

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  • 9 February 2012 12:06, by Anynya One

    F**k ya pussy dude, this Jalabac.. ibn El wiskh with dirty mind of war and naked knowledge against Southern Sudanese will never succeed. Fool your people Arab, not Southern Sudanese. For us, you’re done. Just pack ya ass go home, no oil!

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