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Sudan to assume full ownership of oil pipelines by end of 2016: minister

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June 9, 2014 (KHARTOUM) –Sudanese oil minister Makkawi Mohamed Awad announced on Monday that an agreement will be signed with a number of Chinese companies by which Khartoum will assume full ownership of the oil pipeline that extends to the South by the end of 2016.

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A Sudanese engineer points to a damaged section on an oil pipeline in Heglig on 23 April 2012 (Photo: Reuters)

Awad made the revelation during the meeting of the economic sector ministers chaired by second vice-president Hassabo Abdul-Rahman.

Khartoum used the oil pipeline as leverage in its conflict with Juba, and Sudanese President Omer Hassan al-Bashir ordered its closure more than once to block oil flow from landlocked South Sudan. This prompted the latter to announce its intention several times in the past to build an alternative line through Ethiopia or Kenya.

The 1,610 kilometers pipeline cuts through the oil production fields in Heglig and passes through Khartoum and al-Obaid refineries all the way to Bashayer sea port on the Red Sea which lies south of the city of Port Sudan.

The $1 billion pipeline has a 250,000 barrels per day (bpd) capacity and its construction was carried out by several specialised foreign companies, all operating under the supervision of the Greater Nile Petroleum Operating Company (GNPOC).

It was formally inaugurated on 30 June 1999.

In a related issue, the Minister of Electricity and Water Resources, Moatez Moussa said a delegation comprised of the ministers of finance and oil as well as officials from thermal generation company will visit China this week to follow up on a number of issues, including problems related to the electricity sector in Sudan.

He disclosed that their main goal is to convince Chinese contractors to resume working on al-Foula electricity plant which was suspended in 2011 as a result of funding issues.

(ST)

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  • 10 June 08:07, by Jalaby

    To Sudantribune,
    You mentioned in the Arabic version for the same topic that the south had a plan to build an alternative pipeline through Kenya but western reports showed that alternative pipeline would take long time and would need a lot of money and economically would be unprofitable!
    I can see you missed that facts here!!

    repondre message

    • 10 June 08:14, by Jalaby

      Well, the south priority now not to build a pipeline but to stop the war and fix the situation of deep division among southerners because southerners are now under great risk of finding the basic needs for surviving!
      Add another fact here, the south oil production is declining since there is no new oil fields added and that for sure will make it unprofitable pipeline!

      repondre message

      • 10 June 08:25, by Jalaby

        Those guys didn’t benefit themselves from the oil and blocked us at the same time benefiting it
        Unfortunately the south is hopeless case because it’s inhomogeneous nation and lack for the basic requirements to build a nation and then a country!
        I am not really surprise hearing many loud voices among Equatorians now to go for federation and probably separation later

        repondre message

    • 10 June 09:35, by Hardball

      Sudan to assume pulls ownership of the pipeline?! In what way that Sudan would own the pipeline; when it was built using South Sudan oil money. Sudan has to build its own pipeline using their own money in order to claim it as theirs; but not if it was built using South Sudan oil money; Sudan couldn’t be more irrational than that to think that way.

      repondre message

      • 10 June 09:49, by Jalaby

        Hardball,
        Only the pipeline was built by south oil money? what about the infrastructure like building dams,roads,power plants,army equipment,etc..all that were built with the south oil money or just the pipeline? why don’t you claim your right on that too?
        Absolutely you’ve no right to have a country because you’re naive and undeveloped ppl

        repondre message

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