Oil pipeline in sight for South Sudan

According to its Energy Minister, South Sudan’s government has been in talks with major energy companies and neighbouring governments regarding oil pipeline options.

After gaining independence in 2011, South Sudan gained control over considerable oil wealth without many export options. Disputes with its northern neighbour culminated over pipeline transit fees last year, resulting in South Sudan curtailing its oil production.

South Sudanese Energy Minister Stephen Dhieu Dau told media recently that several oil pipeline options for Red Sea ports were under consideration.

Juba is in "talks with companies and governments who have expressed readiness to finance the construction of the alternative pipeline," he said.

South Sudanese sources have suggested that despite a lack of a formal route plan, construction on an oil pipeline could begin as early as October.

"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," Dau said.

South Sudan and Sudan rely almost fully on oil revenue for their incomes.

Edited from various sources by Cecilia Rehn.

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