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S. Sudan’s pipeline construction begins October: minister

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February 9, 2013 (JUBA) - Construction of South Sudan’s oil pipeline, to by-pass reliance on neighbouring Sudan, will commence by October, the country’s petroleum and mining minister, Stephen Dhieu Dau, told Sudan Tribune in an exclusive interview on Saturday.

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Stephen Dhieu Dau (Getty)

The government says it is engaged in a series of direct discussions with a number of donor countries to help provide funds for the construction of an alternative pipeline to resume production and transportation of its crude oil to international markets,

In January 2012 - 18 months after seceding from Sudan - the young nation stopped its oil production over a transit fee dispute with Khartoum. The move has severely affected South Sudan’s economy, with oil revenues accounting for 98% of the government’s income.

Dau said he had met with “potential investors” in the oil sector who have expressed readiness to finance construction of the pipeline during a recent visit to South Africa, where he participated in a mining conference.

No deals have been signed but the government is in “talks with companies and governments who have expressed readiness to finance the construction of the alternative pipeline”, Dau told Sudan Tribune.

South Sudan is still considering three potential routes to reach the East African coast. Prior to the shutdown Southern crude was exported through Port Sudan on the Red Sea.

Despite agreeing on new transit fees over four months ago, border tensions have meant that production has not yet resumed. Sudan insists that border security be resolved as a precondition to other aspects of the September deal being implemented.

The impasse continues, with Juba accusing Khartoum of adding additional demands in order to block its implementation.

The official said previous Memorandums of Understanding (MoU), which his ministry has signed with Ethiopia and Djibouti authorities to create a mechanism for the construction of a pipeline through their countries, still stood.

However, Dau also expects his country to sign similar deals with the government of neighbouring Uganda and Kenya, which would allow the construction of a pipeline to the Kenyan ports of Lamu and Mombasa.

The construction of one of the new pipelines would begin around October or earlier “if all goes according to the plans”, Dau told Sudan Tribune.

A number of companies, including a Japanese company which has just completed feasibility studies on the Lamu route, have shown interest to partner with a number of American companies to jointly fund the project.

“We have already reached an understanding with some international companies to do more exploration and to build [a] pipeline with understanding that they will own it, operate it and transfer later. We shall only be renting it from them during the period of the agreement”, he said.

A senior member of the country’s governing Sudan People’s Liberation Movement (SPLM) said his ministry had already given a contract to German company ILF to carry out a feasibility study on the South Sudan-Ethiopia-Djibouti route.

The study is underway, but will take between six and nine months before it is completed, he added.

South Sudan took with it nearly 75% of the oil resources it previously shared with Sudan when it seceded in July 2011 after a self-determination referendum conducted in January that year. The vote was a key part of the 2005 peace deal, which ended over two decades of civil war between the north and South.

(ST)

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  • 10 February 2013 07:00, by master

    hahaaaaaa
    let us wait and see

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    • 10 February 2013 07:19, by Malou Manyiel

      I’m tired of saying things which are very far to be realized. Does it help in the current situation? Construction of piplines will take 3 to 4 years with probability whether funds will be available by then, is at 15%.

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      • 10 February 2013 10:26, by Sala Gai

        In the Republic of South Sudan people like to talk, talk and talk without implementation of what they have plan for future use, like those who are in Government are time consuming without action from top to bottom are useless

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    • 10 February 2013 07:54, by kamal

      Omar bhasir will be taken to hospital this time to hear that ha ha ha hahahahaha

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      • 10 February 2013 21:10, by ViVa Sudan

        I sure u will get sick if u follow politician in S.sudan fake Repuplic

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      • 11 February 2013 14:09, by Northern Sudanese

        kamal
        you have been saying this crap since 2011, look at yourself today, more than halve your people depend on foreign food aid :)

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    • 10 February 2013 09:14, by Lomiji

      Let us hope that the government of South Sudan will walk the talk this time round ! Kiir has fooled us for quiet long now with the same song of construction of new oil pipe lines ! Oh God ! help South Sudan come out of hardships !

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    • 10 February 2013 09:21, by Bentiu Elite

      Hey guys here,,,,constructing A PIPELINE is not like fighting a battle in which after hours you have results. It is an engineering thing that take times.. In it you have : FEASIBILITY STUDIES,ENGINEERING DESIGN,PROCUREMENT OF MATERIALS,CONSTRUCTION , ETC . These can not happen over night . Our government need good partners to do all these things in a way South Sudan is not a loser.

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      • 10 February 2013 10:08, by Costa

        Bentiu Elite, you are damn right.To add my opinion, I think fixing a starting date (October) without any deal in hand gives it more a political sound, than a practical Engineering plan of action as you proposed.

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    • 11 February 2013 02:42, by Lotodo Awino Odug

      I will be dead from hunger by then, can you make it march mr Dau please !!!!!!!!!!!!!!!!!!!!

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  • 10 February 2013 07:13, by marie

    Mr Minister, why are you people having haphazard plans. You better concentrate in the completion of the refinery before jumping to this humongous project while the government does not have money. Finish the refinery and the by-product would reduce the cost of roads connecting the different states and this would generate some revenue for the government to execute the pipeline project.

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    • 10 February 2013 07:27, by Malou Manyiel

      Marie,
      Good observation. You have a point there. Our government is confused, what they say is what can never help at all. If you chase 2 rabbits you will catch none. Instead to do one thing at a time to lift them out in the current economic crisis, they just run up and down and from corner to corner with no funds at hand.

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  • 10 February 2013 07:35, by Jalaby

    HAHAHAHAHAHAHAH
    "The (feasibility) study,he (Dhield Dau) added, has begun but will take about six to nine months before it is completed"
    Who are you fooling Mr. Dau?where in the world that a project starts before the feasibility study or business plan are done?! the feasibility study will indicate first whether the project is profitable

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    • 10 February 2013 07:41, by Jalaby

      and fruitful or not after that the investors will make their own calculation and then bid!!
      Can you tell us Mr. Dau what is the name of the company that decided to build the pipeline in October without knowing the feasibility study of this project and its business plan?! what pipeline route in the first place? through Kenya or Ethiopia/Djibouti?! what a liar minister?

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      • 10 February 2013 07:49, by Jalaby

        I think thieves authorities in Juba are so frustrated and upset after Chadian president made his recent visit to Khartoum and agreed with Bashir that Sudan will carry the Chadian oil through its pipeline to Red Sea and then to booming and hungry oil Asians countries such as China, Japan, India, S Korea, etc
        Sudan has the oil infrastructure and all necessary refineries

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        • 10 February 2013 07:51, by Hardball

          Jalaby, why are you so anxious about any success or failure of South Sudanese business with other countries? Shouldn’t you be worried about your own country in the way it has lost its dependent on South Sudan wealth? If I were you, I should be concern on how Sudan will survive without South Sudan!

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        • 10 February 2013 08:01, by Jalaby

          and has the longest oil pipeline in Africa (longer than Chad-Cameroon pipeline which equal 1070 KM while Sudan pipeline stands for 1750 KM after adding the new pipeline that Sudan has just built that connects Hadida oil field to Belila main oil station with length of 150 KM)!
          I told you as soon as Sudan finishes connecting its new oil field of Sufyan in East Darfour

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          • 10 February 2013 08:16, by Jalaby

            then adding Chadian oil to Sudan pipeline will be an easy job since the pipeline reached Darfour!!
            Believe me (I always telling you facts), Sudan plan is beyond Chadian oil but Sudan eyes are also looking at the biggest oil African country, 2.5 million (bbl/day),Nigerian oil to carry it to Asian booming market through Port Sudan!!
            South Oil Minister,u r liar & thief!

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            • 10 February 2013 08:57, by master

              jalaby
              what you said will stimulate these guys to drink marris all night let them enjoying their happy dream

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              • 10 February 2013 20:50, by Force 1

                It seems there are two guys under this infamous name called “master”; the one who comment with three or four words only and the one who actually write a complete sentence!

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            • 10 February 2013 10:37, by Majongdit

              master and Jalaby,
              I know why it pains you so much when you learn that another pipeline shall soon be available for South Sudan. Truth is bitter and I pity you being in that agony. Sorry brothers there is nothing you can do about it now. We know the only card you have been using to bargain your issues and present one demand after another is ’pipeline’. That pipeline was constructed on a borrowed

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            • 10 February 2013 13:32, by Ayom Ayom

              Sudan will steal chadian oil, and the war will resume between the two countries.

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        • 10 February 2013 12:06, by Nyakuzuny

          hey Jalaby Son Of bitch shut up your mouth , our Pipline is already returning from East Africa, Because we are really african. brother we are riches Nation.

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  • 10 February 2013 07:40, by 4Justice

    These folks lack any sense of planning, they hop from one thing to another without adequate planning in advance. This thing should have started long time ago, you guys have disappointed us on every occasion, sorry guys you lack even the most basic common sense.

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    • 10 February 2013 23:38, by Kenyang

      4justice,
      Your education or personal compacity is far more ahead. Hopefully, your blessing will continue to enhance your chance to shape our new country, Republic of South Sudan. Personally, i’m very, very proud of you, especially that you come from our own blood. Even angles in heaven would be proud to have someone like you on their side. People like you make one proud to be South Sudanese.

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  • 10 February 2013 07:48, by 4Justice

    You see them on SSTV chewing nuts in their silly little so called council of ministers meetings giggling like cartoon characters amidst aerial bombardments, these people are sick completely out of touch with reality.

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    • 10 February 2013 21:05, by ViVa Sudan

      Yes this exactly wat ur fake Dinak GOVT are .. hahahahah
      new pipe line wat a funny joke ..dear Borther Jallaby teach these ignorant gve them free lessons coz they adoupt to take free food too but not any more from us we have done the biggest pipeline & refineries in timw of war now u have peace show us how u can do it thru kenya / uganda hell heaven earth ETC... now way i said pay $ then pass oi

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  • 10 February 2013 07:49, by barbayo

    mr minister you are not capable to dilevery services to peopl of South Sudan .you forget about North Sudan raod.

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  • 10 February 2013 08:12, by kaci-banno

    Stephen Dhieu you are a big liar, incapable and we tired of propaganda, i hope soon you will be relieve from the ministry of petroleum.
    Kaci banno

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    • 10 February 2013 08:36, by Nibs

      For those who said south Sudan should first constructe refineries,you don’t follow/read the news.two oil refineries are under construction,the will be functional in July this year.

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    • 10 February 2013 08:39, by Nibs

      For those who said south Sudan should first constructe refineries,you don’t follow/read the news.two oil refineries are under construction,the will be functional in July this year.

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      • 10 February 2013 09:23, by Moral Agent

        @ Nibs ,,,if you believe in news is all true you better stop reading because we been follwing news since the indepedent of south nothing happen don’t be simple minded or unless refineries are under construction on your village

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  • 10 February 2013 08:39, by Ayuiu Makuac Lam

    South sudan government is lying how long did they promised the alternative pipeline. All nonsense

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  • 10 February 2013 08:53, by Moral Agent

    Minster Stephen Dhieu is alright if you have nothing to do no one will blame u because the whole GOSS is doing none too, talking like illiterate and idiot on the media won’t you make look like you working , no investor can risk his money in no guarantee situation nothing is secure in south

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  • 10 February 2013 10:29, by mudfish

    shame on S Sudan u ever give empity promise,stop liers Stephen and be perfect.so which company exactly ?

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  • 10 February 2013 10:41, by Northern Sudanese

    didn’t they before say that it was already under construction? lol
    ok, lets say it will start in october, it will mean that the pipe will not be ready for use until early 2017 . by that time our oil deal will be expired and our economy fully recovered and oil in south sudan will halve by 2020.

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    • 10 February 2013 12:16, by Nyakuzuny

      brother Northern Sudanese please you wait’ we will not Reach 2015 without pipline.

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      • 10 February 2013 12:23, by Northern Sudanese

        Nyakuzuny
        you are free to day dream my friend, i can’t take your dreams away from you :)

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        • 10 February 2013 15:16, by Bentiu Elite

          Omar,Northern sudanese + Jallaba ,
          Do not hang on the hope that South Sudanese can not do it!!
          South Sudanese can do anything that they ever want to do: They can separate from you, they can chase you out of Panthou(Heglig), they can chase you upto Khartoum, they can build their own pipe line etc . Just waste your times on the hope.

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          • 11 February 2013 14:03, by Northern Sudanese

            Bentiu Elite
            they can separate because we respected their wish, they can beat a small border force but can easily be kicked out and lose thousands in 3 days , they can easily dream of khartoum and they can built a pipe in 3 years lol
            you guys are just day dreaming, but like i said before, we can’t take your dreams and imaginations and stupidity away from you :)

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        • 10 February 2013 18:07, by Force 1

          So, Northern Sudanese, are you begging us indirectly to go and use our old pipeline that goes through Sudan and give up the new pipeline? It’s not going to happen in a million years! Remember; the pipeline that’s going through Sudan was built using South Sudanese money. You’ll either pay us back in order for you to keep it or we’ll destroy it!

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          • 11 February 2013 14:08, by Northern Sudanese

            Force 1
            dude let me make everything clear for you because you seem to be struggling a lot! the old pipe was built by our money because there was no effective oil from south sudan! the biggest examply, you can’t finance a new pipe by your own money although you got most of the oil.
            we don’t want your oil, we are in Addis for territories! you can drink your oil, it will halve by 2020 anyway :D

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  • 10 February 2013 10:57, by Ommar Bashir

    Do not open your mouth on what might not happen, I mean do not just go to media and tell what is good to hear and not to be followed. In addition, tell people when it starts not when will it going to begin.

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  • 10 February 2013 17:24, by Pif Paf

    lol ..Funny Minister. Ill tell you the feasibility study:
    a-your pipeline will be too expensive due to difficult terrain, distance & heavy nature of your oil
    b-Lack of security throughout the route of the pipeline (recipe for a situation worse than Nigeria)
    c-oil production will half by 2020 i.e not cost effective
    d-lack of political support
    e-target for Higlieg revenge if compensation not paid

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  • 10 February 2013 19:34, by AjakHeerbeek

    This is what i want my government of South Sudan to do! We have wasted a lot of time on endless discussions and paper work! I encourage you my leaders to stick to this plan, it will help a lot.

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  • 11 February 2013 17:08, by JAMES KUOI STEPHEN

    I thanks SPLM administration for productive decision on oilpipline construction, Therefore,iam contributing to your ideas on implementation and committment. These will be the chance and hope for our people, Southern Sudan to resettle it as the granting construction.
    SPLM oyee!,SPLA oyee!,don’t change your ideas again oyee.Jalap become weak oyee! Committment is the contribution!!!!!!!!!.

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