South Sudan seeks Chinese funding for alternative oil pipeline
September 4, 2024 (JUBA) – South Sudan is seeking funding from the Chinese government to build an alternate pipeline through the port of Djibouti from Ethiopia.
South Sudan President Salva Kiir, at a meeting with senior Chinese officials, said an alternative pipeline is needed following the halt in oil flow due to conflict in neighbouring Sudan.
More than a year of fighting between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has destroyed the oil infrastructure.
South Sudan’s presidency, in a statement on the state-owned television (SSBC), noted that constructing pipelines to Djibouti through Ethiopia to revitalize oil exports appears the option for consideration.
The statement followed a meeting President Kiir held with the China National Petroleum Corporation (CNPC) which discussed reforms in the oil sector, including improving production, building a new refinery, and strengthening the distribution network.
The meeting, according to the statement on SSBC, proposed an alternative pipeline to Djibouti via Ethiopia to enhance export capabilities and support expanded extraction in Blocks 3 and 7.
Kiir reaffirmed his government’s commitment to unlocking the country’s oil potential and improving energy security to facilitate infrastructure projects.
The president of CNPC, Dai Houliang, reiterated the corporation’s commitment to its strategic partnership with South Sudan.
Dai highlighted key areas of collaboration that could yield mutual benefits. With the South Sudanese government providing security assurances to ensure the safety of workers, the head of the Chinese corporation vowed to commit to the partnership.
“Mr. Dai also assured President Kiir of the corporation’s willingness to work closely with the South Sudanese team to ensure smooth flow operations of infrastructure projects and the continuous exploration of new oil reserves in the Country to propel equitable development,” the statement reads in part.
The Under Secretary of the Ministry of Petroleum, Chol Deng Abel, conveyed President Kiir’s vision for investment in green energies, signaling a progressive approach to energy development that aligns with global trends toward sustainability and inclusive diversification in energy sources.
South Sudan relies on oil proceeds it exports to the international market through neighbouring Sudan. Oil revenues account for over 90 percent of South Sudan’s annual budget.
(ST)