South Sudan signs deal for Djibouti pipeline

The newly emerged nation of South Sudan has made another step on the road to independence from its northern neighbour’s oil infrastructure by signing a contract for a new pipeline crossing through Ethiopia and terminating in Djibouti.

South Sudan’s minister of Information, Barnaba Marial Benjamin said that: “We signed an agreement for another pipeline to go through Ethiopia and on to Djibouti […] The pipeline will be owned by the government of South Sudan.”

Despite some optimistic estimates, the pipeline is likely to take several years to complete. The pipeline, as it crosses Ethiopia risks becoming a target in an area that often sees fighting between Ethiopia, Somalia, and Eritrea.

Djibouti, however, remains rather more stable, due to the presence of foreign troops based there to maintain order.

South Sudan and Sudan have yet to agree to any kind of revenue sharing deal, leading South Sudan to shut down its oil production in protest.

Read the article online at: https://www.worldpipelines.com/business-news/14022012/south_sudan_signs_djibouti_pipeline_deal/