South Sudan is to build an oil pipeline to Port Djibouti through Ethiopia.
A memorandum of understanding for the construction of the pipeline was signed in Addis Ababa earlier this month according to Barnaba Marial Benjamin, South Sudanese Minister for Information.
Companies from Europe, China and the United States have expressed interest in carrying out feasibility studies said Benjamin.
The agreement with Ethiopia follows a prior arrangement with Kenya to build links between the Kenyan Port Lamu and the oil fields in South Sudan.South Sudanese arrangements with Ethiopia and Kenya follow a bid to reduce the new nation’s dependence on North Sudan which is so far the only route to export its oil resources.
It is to be remembered that South Sudan halted oil productions last month following allegations that North Sudan had stolen crude oil valued at 815 million US dollars according to allegations leveled by South Sudanese President Salva Kiir.
Inspite of claims from Khartoum that the oil was confiscated for unpaid transit fees South Sudan chose to halt production before allowing its oil revenues to fall in the hands of the North said President Kiir.
Discussions on the situation are expected to commence in Addis Ababa.
Source: http://www.bbc.co.uk
