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Sudan Tribune

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South Sudan to build its first oil refinery in Warrap state

By James Gatdet Dak

October 2, 2009 (JUBA) – The semi-autonomous region of Southern Sudan has embarked on building its first ever oil refinery in Warrap state for its huge oil reserves as the clock ticks towards referendum on secession in January 2011.

The Khartoum Refinery installation (Xinhua)
The Khartoum Refinery installation (Xinhua)
Sudan currently produces more than 600,000 barrels of crude oil per day which bring tens of millions of US dollars on daily basis from the international market.

Most of the Sudan’s oil is produced from the oilfields located in Southern Sudan while the current country’s refineries are all located in Northern Sudan.

98% of Southern Sudan’s overall revenues that constitute the annual budgets for the region come from the 50% share of the oil produced in Upper Nile and Unity states in accordance with the 2005’s peace deal between North and South.

In its Friday meeting chaired by the Vice President Dr. Riek Machar Teny, the Council of Ministers passed a resolution on the project for building the oil refinery in Southern Sudan that will be located in a place called Akon in North-western Gogrial area of Warrap state.

The project was initiated and presented to the cabinet meeting by the Minister of Energy and Mining, John Luk Jok.

The huge refinery project which is expected to take about three years to complete from the date it kicks off at the construction site will begin by establishing a Joint Venture Company (JVC) with any oil companies interested to partner with the government, finding financiers to fund the project and then JVC finally signing a contract with a national or international company that will implement the project on the ground.

According to a press statement by the official spokesperson and Minister of Information and Broadcasting, Paul Mayom Akech, the crude oil that is targeted for refinery will be extracted from Block 5A oilfield in Unity state.

To transport the crude oil to Akon refinery site, Minister Mayom explained that the Company will also construct a pipeline of some hundreds of kilometers long from the Unity state oilfield.

Mayom said the Government of Southern Sudan will have the biggest share in the $10 million worth JVC ownership body and the share will be represented by the Southern Sudan indigenous Nilepet oil company.

After formation of the JVC and securing of funds, the Company would then advertise the project to any interested national and international companies that would be subjected to competitive bidding process and out of which a winner will sign a contract with the JVC to technically implement the project on the ground.

Tens of thousands of indigenous people of Southern Sudan are expected to benefit from the project as they will be employed to do most of the labor work at the construction sites.

The cost for implementing such an expensive single project is not yet known, but may run into billions of dollars.

The Council of Ministers also directed the Minister of Energy and Mining to discuss the possibility of building refineries at the sites of the oilfields in Upper Nile and Unity states with any major oil companies that may be interested.

The semi-autonomous region earlier resolved to also embark on a separate project to build an alternative pipeline from Southern Sudan to Port Mombassa in Kenya for transporting the crude oil to the international markets.

Currently the crude oil from Southern Sudan is being transported to the international market via Port Sudan in the far North-eastern part of the country through the thousands of kilometers long Chinese-constructed pipeline.

Mayom said the Government stressed the importance of indigenizing the operations of the oil sector so that “Southern Sudan is not caught up” in case it chooses secession in 2011.

(ST)

75 Comments

  • Dinka Boy
    Dinka Boy

    South Sudan to build its first oil refinery in Warrap state
    Great job.
    In fact, we need this kind of development in the South so the country will have their full market share in their oil revenues. This will eliminated North fade back revenues that they gave to South and they took the larger share of oil revenue.

    Reply
  • Rambang Deng
    Rambang Deng

    South Sudan to build its first oil refinery in Warrap state
    Why should we waste money trying to build a pipeline from current oil production areas of Upper Nile and Unity State to Warrap, a distance of hundreds of kilometers away?

    Are we not doing what Arabs did in the past by taking jobs away from local community (Greater Upper Nile in this Case) to Warrap, Greater Bhar elGazal?

    Oooop! I forgot that it’s a favor for Banydiit (Banylueth) Salva Kiir Mayardiit. Looooooooooooooooooooooooool!!!!!

    Rambang Deng

    Bentiu, Unity State

    South Sudan

    Reply
  • Nile
    Nile

    South Sudan to build its first oil refinery in Warrap state
    Now this is what I call ” the good news’ but wait a minute? will GoSS actually start building oil refinery with this rampant killing in south Sudan? don’t get me, building oil refinery has self interest in mind, but I doubt the seriousness of those officials. because the first thing they need to be doing right now is stop the insecurity situation then after anything is possible.

    Reply
  • oshay
    oshay

    South Sudan to build its first oil refinery in Warrap state
    What an idiotic move, vintage Dinka. When Southerners are starving and dying from diseases, the typical SPLM decides to build an oil refinery instead of schools, hospitals and job opportunities.

    God I hope the oil runs out.

    Reply
  • Gatwech
    Gatwech

    South Sudan to build its first oil refinery in Warrap state
    Dear readers,

    There is something fishy in this project. The oil refinery is supposed to be built in Unity state where the oilfields are and not in Warap state. Another one can also be built here in Upper Nile state where the oilfields are. Warrap cannot qualify to be the location for this oil refinery unless GOSS wants to act like Jellaba.

    What happened to John Luk Jok? Why did he choose Warrap state? Was he to bribe Salva Kiir so that he keeps him in the position of being the minister of Energy and Mining at the expense of the people of Unity state? Is he happy to see the people of Akon in Warrap state benefiting from the construction of the refinery and not the people of Unity state? Or was he forced by the President Salvatore Kiir to take the refinery to his (Kiir) home state? Was something from the Unity state’s 2% believed to be given on charity basis to Warrap state by Governor Taban Deng Gai not enough for him? This is a selfish decision. It is not acceptable.
    I hope the project will be replaced with other projects in Unity or Upper Nile states, the rightful owners.

    Reply
  • soldier boy
    soldier boy

    South Sudan to build its first oil refinery in Warrap state
    for you all Southern listen up…this is a very good news. this news means a lot to us that we are about to got our freedom back from Arab and we are about to become one with the great voice and independent from northern. SPLM are not sleeping they know what they doing and we are behind them 100percent.But my concernt is people who are killing each other like animals.Killing must stop, fighting against each other must stop. Southern Sudan is ours and GOSS is ours government it’s Do not belong to any one eles than us. so please people let’s come togather as one nation and fight againest our enemy Northern. let’s build our young Country and live like others nations let’s make southern Sudan a country that we love and a place to live, with out a fear from other Tribles . let’s leave Tribelism behind and live as one nation. Southern Sudan is our Country.
    And God bless Southern Sudan. And it’s Government.

    Reply
  • Gatwech
    Gatwech

    South Sudan to build its first oil refinery in Warrap state
    Readers,

    Below is a relevant issue of insecurity and how the tribal GOSS leadership fails to tackle it justly, fairly and honestly to allow for developmental friendly environment for projects such as the oil refinery.

    Yes, it is true that tribal fighting in the South is widespread in almost every state and it involves many different tribes. GOSS should be doing something about these mad communities in an honest and fair way. It should not apply discriminatory policies that favor certain tribes and negatively target others. The Lou-Nuer incident was interpreted by GOSS leadership to suit its tribal intentions. Yes, the Lou-Nuer revenge attacks on Duk Padiet targeted government institutions. But was it something new? Agaar-Dinka recently targeted SPLA and Police convoys using RPGs and destroyed some of them. Was that not against the government property and forces? The Nyarweng-Dinka of Duk targeted Lou-Nuer Wildlife and Police officers, traders, teachers, agriculturalists, money for salaries, etc in their truck outside Duk county headquarters, killing several of them. Was that not an attack against the government personnel and money? The Bor-Dinka targeted SPLA officers, killing even a Colonel from Lou-Nuer inside Bor town. Was that not a target against the SPLA army?

    It is however funny that the GOSS leadership in Juba has turned tribal. Yesterday as I was watching South Sudan satellite TV (SSTV) I was surprised that the tribal leadership including the President, Salva Kiir, minister of Information Paul Mayom and the SPLA Spokesman, Kuol Diem Kuol, and someone called Alaak, etc were very busy making noises about the fighting between bodyguards of Paulino Matip and Taban Deng Gai in Bentiu, Unity state. They mobilized the local, national and international media to maximize the incidence because it involved something to do with the Nuer. They wanted the Nuer to be seen as the spoilers of peace in South Sudan. So they got that chance to tell to any body what had happened in Bentiu. Paulino Matip and Taban Deng Gai were not in Bentiu during the incidence. Taban had gone to Europe while Paulino Matip was in Juba. But the tribal leadership wanted it to sound like something directly involving those two Nuer figures despite the fact that it simply started as a quarrel between their two bodyguards in Bentiu.

    And why these unblessed tribal leaders would be only interested in conflicts between Nuer figures in the first place? Why were they not interested in the Warrap state conflict between Salva Kiir Mayardit and Salva Mathok Geng-dit that fitted Aguok and Apuk Dinka clans which fought using heavy artilleries? Why they were not interested to mobilize the Media to magnify the Khorfulus/Atar conflict between General Gier Chuang Aluong and General George Athor? These two Khorfulus/Atar bitter opponents could not be reconciled successfully in that mad Jonglei state of Kuol Manyang. They had to be brought here to Malakal for our state government intervention that gave birth to their successful reconciliation. Also why not interested in conflicts among politicians of Lakes state which involves Daniel Awet Akot, Paul Mayom and Deng Athorbei, etc?

    Unsurprisingly and interestingly, they all kept quiet about this similar deadly fighting between the Bor-Dinka and Mundari communities which killed almost the same number of people as in the Bentiu incidence and happened at the same time (Friday) with that of the Bentiu incidence. This Bor-Dinka and Mundari fighting also occurred close to the capital, Juba, and as reported, resulted to the closure of Juba-Bor road. The tribal leadership did not rush to call it a fighting between communities of Kuol Manyang Juuk and Clement Wani Konga.

    These tribal leaders were ashamed to talk about it because it involved the Bor-Dinka who carried out the attack against Mundaris. They did not want the public to hear about it to avoid the chance of Bor-Dinka community being seen as provocative and spoilers of peace that implements the interests of Khartoum, which is their preferred description of any incidence involving the Nuer. What a tribal incompetent leadership!

    This poor tactic is a cheap propaganda always resorted to by failed ruling tribal cliques every where in the world. They turn into a chieftaincy and that is what happens with the GOSS tribal leadership. They are panicking about the inevitable! They are desperate looking for any means to spoil the name of the Nuer, their most feared adversary, and this has always been both their daydream as well as their nightmare. There was a conspiracy of silence on this ugly and deadly fighting between the Bor-Dinka and Mundari. And this is to save the image of Bor-Dinka, but destroy the image of Bul-Nuer in Bentiu. Very interesting indeed!

    What a tribal incompetent leadership in both GOSS and SPLA! They think the public readers and viewers are fools whom they can just mobilize to hate the Nuer when every body knows which tribe leads GOSS in this corruption, thievery, lack of development, lack of political direction, cowardice to face elections, deterioration of insecurity, tribal conflicts, etc. Even if they want to hide any fighting that does not involve the Nuer and rush to talk about any fighting that involves the Nuer, the public knows them better. They can run but they cannot hide. If GOSS/SPLM/SPLA do not change their tribal tactics and address such issues with one heart and right mindset, we may never reach our destiny smoothly. “Ci wec ku ruac kaap.” Athooow!

    By Tut Gatwech, Malakal, South Sudan

    Reply
  • ngor martyn jok
    ngor martyn jok

    South Sudan to build its first oil refinery in Warrap state
    I thought building higher institution such as providing a better set up for the universities of Southern Sudan ,other than oil refinery would first be the priority’.

    The universities will increase a real skill production for such projects as into building oil refinery.I don’t really sense any reason to have it as the priority.

    Ignoring projects for setting up universities of a substance will one day kill us’.ask me what!
    There’s nothing like building a skill ,and apply its practicalities to the real world as into such projects.

    I don’t say ,it’s a bad one but,give education a priority.
    Just try to evaluate,every each day how many students ‘re outside the country delivering the hell of money outside the country.

    Reply
  • Angelo Achuil
    Angelo Achuil

    South Sudan to build its first oil refinery in Warrap state
    I think the reporter (James Gadet) missed out a big journalist question “why?” Why in Gogrial West? If he had considered answering (having asked)this question, people won’t be insulting each other over this report – “south Sudan to build…” not even happened! It is like that old story between a son, father and a donkey, find out – so pathetic to quarrel over a wind! Gadet, learn a lesson and do better next time. You ran to the internet with half a report – a dangerous step brother.

    Reply
  • Mr Outspoken
    Mr Outspoken

    South Sudan to build its first oil refinery in Warrap state
    Excellent news!!!!!!!!!!!

    Reply
  • Khent
    Khent

    South Sudan to build its first oil refinery in Warrap state
    I agree with Gatwech, the oil refinery should be located in Upper Nile. A sense of fairness should prevail- the Naath people are our blood brothers, and have sacrificed thousands of their precious sons in our collective struggle for liberty.

    I salute the Naath tribe. A message from a true Dinka brother.

    Reply
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