Wednesday, June 29, 2011

South Sudan is planning Oil pipeline through Ethiopia

The breakaway region of Sudan, to be known from July 9 as the Republic of Southern Sudan (RoSS), is planning an oil pipeline through Ethiopia as one of its option to circumvent the 2005 oil sharing agreement with Khartoum, South Sudan’s oil minister Dr Luol Deng said in Dubai on Tuesday. Producing more than 70 per cent of Sudan’s oil, the South Sudanese administration feels the 2005 agreement, which calls for a 50-50 sharing of oil revenue between the two entities, is unfair and cannot be implemented. However, all the oil refineries, storage facilities and ports lie in the Khartoum controlled territory, which receives the crude through two pipelines. “Oil sharing has been one of the highly contested issues between us (North and South) and we have had continuous discussion over this. For now we will continue with the current mechanism and use North’s facilities, but in the future as we gain independence and pump more oil these two pipelines would be insufficient, that is why we are planning to have another one through Ethiopia,” said Dr Deng. Presently, South Sudan’s only source of income is oil and the administration feels the country has the resources to change that. The landlocked country has millions of acres of fertile land and importantly enough water to work the land as well. The Vice-President says the country has wildlife greater than those of Kenya and Tanzania — two countries famous for its wildlife tourism.The UAE would be hosting an investment and trade conference on South Sudan in the month of October.Source ( KhaleeJ Times )

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