South Sudan’s information minister announced today that the nation will be moving ahead with studies into new oil pipelines into Kenya and Djibouti with the help of Germany’s ILF Consulting Engineers.
This is first dependent, of course, on the peaceful restoration of South Sudan’s exports through pipelines in Sudan.
South Sudan hopes to better understand the possibility of opening new oil pipelines in Lamu, Kenya and through Ethiopia to Djibouti.
“The amount of oil deposits and supply will increase and will need additional pipelines, and the one through Ethiopia to Djibouti is appropriate,” said Barnaba Marial Benjamin, South Sudan’s information minister at an IT gathering in Ethiopia. He adds that the additional pipelines are also due to “huge oil deposits” in the Jonglei state.
On March 12, South Sudan said it would be ready to restart its 350,000 barrel-per-day oil production within three weeks after agreeing on a timeframe for both countries to withdraw troops from their disputed border. South Sudan, which is land-locked, shut down its oil production in January 2012 over disputes surrounding how much it should pay to send the oil through Sudan to the Red Sea.
This was an issue that was supposed to be resolved in September, but never did due to lingering issues. However, after last week’s announcement Sudan said it had begun pulling troops out of a buffer zone. Meanwhile South Sudan’s president Salva Kiir also announced his army’s complete withdrawal from the shared border and said it would take about two weeks.