Oil Deal With Sudan Will Not Jeopardise Lamu Project

This article was last updated on May 25, 2022

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“The agreement with Sudan is only for three and half years. That will not affect the future plan of the government of South Sudan. Given the fact that the capacity of the present Eastern and Western pipeline of Sudan is also limited with 300,000 barrel for both, this gives South Sudan the motivation to build its own pipeline,” said Stephen Dhieu Dau.

“We are hoping that after six months we will finalize the feasibility study so that we can choose one of the routes to construct. The constructors and the funders are ready,” he said.

The South Sudan and Sudan agreed on a three year deal on oil transfer fee. The new nation is hoping to increase its production in the next five years once the production process starts.

The Ministry of Petroleum and Mining together with the Ministry of Electricity and Dams are working on how to utilize the residues in the oil production on power for the people of South Sudan.

This comes after the Minister mentioned that the Ministry will soon commission one of the refineries.

“We have now reached a stage that I can say that after six months from now, we may start to commission one of the refineries. Two have being constructed in principle with the investors, one in Unity State and one is Upper Nile,” said Dau.

According to the minister, these two will meet the domestic consumption. It is estimated that by June 2013 the country will have the best refined products from the crude oil that will be consumed locally and by producing almost 11,000 barrels a day.

The Minister said he is proud of the new Petroleum Act because it provides the frame work for prosperous and thriving oil sector in the country.

“The responsibility for the health and safety will rest on the shoulders of the oil companies. They must set out their goals and objectives and show to the Ministry how they will meet them. The ministry’s role will be to supervise and audit the companies to ensure they abide by their own plans and provide for the healthy, safe and pollution free environment while conducting their oil activities,” he said.

South Sudan and Sudan are supposed to sign the agreed deal in Addis Ababa by the 22 September, and the negotiating team will be travelling next week upon the invitation of the African Union High Implementation Panel.

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