South Sudan Kenya pipeline is “uneconomical” says oil minister
June 4, 2010 (KHARTOUM) — Sudan’s petroleum minister and leading Southern Sudan ruling party official described a proposed pipeline to take oil from Southern Sudan to world markets through Kenya as, “uneconomical.”
Dr. Lual Deng, minister of petroleum in the National Unity Government told the independent daily, Khartoum-based Al-Akhbar on Sunday that such pipeline, “is not economical and it will be expensive.”
“If you are forced, economy does not make sense, but under peaceful conditions we will continue to use existing facilities,” he further said referring to the use existing pipeline transporting oil to Port Sudan in case of southern Sudan independence.
Though most of oil reserves are in the South, downstream facilities like pipelines, storage and refinery are in the North. Sudan produces currently an average of some 485,000 barrels per day (bpd).
Sudan has a number of pipelines, mostly in the North, extending over 3700 km, with a capacity to carry 1.5 million bpd and storage facility with 4.8 million barrels capacity.
The Japanese company Toyota has been floating an idea of constructing a pipeline from Southern Sudan to Kenya with an estimated cost of $1.5 billion, though some experts believe such a pipeline may cost several billion dollars given the tough topography of the region and its length over 3600 km and that it may need years to complete a credible feasibility study and years to construct, provided that finance is guaranteed.
The semi-autonomous South Sudan will hold a referendum on self determination in January 2011. The proposed pipeline would vastly reduce the need for post-referendum economic and political cooperation between the South’s ruling party and their erstwhile foes in the North.
The separation of Sudan into a two states will deny the North billions of dollars in revenue generating from vast oilfields in the south of the country. Currently the North and the South are splitting the proceeds of crude in accordance with the Comprehensive Peace Agreement (CPA) signed in 2005.
(ST)
jur_likang_a_ likan'g
South Sudan Kenya pipeline is “uneconomical” says oil minister
Mr Minister of Oil,
While you are entitled to your opinion on any matter, I believe this subject matter should be left to the parliament of South Sudan to draw up a decision. All mineral resources of South Sudan are owned by the people of South Sudan and it is therefore legitimate for there parliament to decide with the process, export, sale of their natural resources. This is my opinion, I might be wrong but I think you, as a minister of oil should not make statements without consulting your colleaques in the parliament of South Sudan and the people of South Sudan.
Gat nyaraan
South Sudan Kenya pipeline is “uneconomical” says oil minister
that is unfortunate statement minister Lual.you should be thinking about how to construct the pipeline and the lowest cost based on those who presents their bids such as the Japanese company Toyota.Even if the construction cost more than $1.5 billion for example $2bil it will be more economical and safer in the long run. Kenya is more stable politically than sudan and i cannt imagine that south sudan will have any conflict with Kenya any time in the future. In addition the royalty that Kenya will demand for transporting the oil through its land will be lesser several times than the north.
if the south separate and the only mean for transporting the oil is the north, they will impose nighmare conditions for the south, and in any event of conflict as there is high probably in the future if the south separate what will we do if they close the pipeline? because along the pipeline there are 6 pump stations in which north can control the flow of oil and also the port for exportation.
the new minister is trying to boost the current state of affairs, where by the north and south will continue to share the oil dividends according to the CPA(50/50) even if the south separate with the excuse that constructing the pipeline through kenya is uneconomical.
Gar J.
Hold ON, is the statement manipulated by the Media or what?
Dr. Lual statement gave me some doubt and I thought that his opinion was mutated by the Khartoum-based media (Al-Akbar) and if not, I THINK, his opinion is the expression of opposition against the interest of his own people (southern Sudanese), Uneconomical pipeline proposed by the government of Southern Sudan in long term is economically better than the northern Sudanese pipeline which has been helpless to the Southern Sudanese since….second to that, talking about referedum in southern Sudan mean (to Me) that, the government of sourthern sudan (GOSS) must be/stuggle to be: atleast economically stable, politically stable, and to have their own independent networking with the neighboring countries rather than depending on the northern Sudanese in anyway…… let’s hope for the permanent change in Sudan for any available course and both freedom and development will come about…………we are respecting our leaders opinion but expressing our thoughts……..
thanks
Gar J. Abraham
Dinka Boy
South Sudan Kenya pipeline is “uneconomical” says oil minister
The building of pipeline has some advantages and disadvantages in Kenya or in Northern Sudan. The Goss under the ministry of petroleum/energy need to make research where they can built their pipline after seperation.
This might be a difficult talk but the cost base on the two locates will determined the better area for distribution. I know that the building of new site might cost alot on money but who knows that it might cost low. We have to examine the two rout and go with the quality services or cost that will benefits the Goss.
Also, the contract must be accurrate and document when we choose any side because some countries sometimes go with the situation. For example, a work might get taugher on the way and this sometime might help others to shift their gears. We do not want that to occur.
If the route to the North is cheaper or had some quality services than the Kenya side than we will go with it and verse versa.
Thanks
Adam
South Sudan Kenya pipeline is “uneconomical” says oil minister
Look guys! Yes. It is not economical, nor it is sane.
let me shock many readers, the whole separation idea is uneconomical and insane. Think about this carefully and let the wealthy Amoum and other unwise dreaming separatists .
Separation is a nightmare now. You cannot have a new state while you have nothing; no economy (100% oil), no infrastructure, no trained human resources, no security, no democracy , no homogenous society or identify – no nothing. Where are Francis Deng, Mosses Machar, Joseph Lago, Bona Malwal and many other honest Southerners to enlighten these separatists.
CPA is good and can be developed further after unity. What the CPA provides is much more than SPLA fighters were dreaming. But SPLA/M – Not SPLM/A made the implementation of its protocols s very difficult. NCP has also stupid understanding that it must control everything. However, divided Sudan is very painful to the North, but leaves no single hope for the Southerners.
Those who are relying on the West to come and erect a South Sudan are wrong. The West will come to the South to fully control it and steal its virginity. Believe me! There will be only more pains, underdevelopment, deprivation and wars among southerners. Black Waters will do very well in the South – much better than what it did in Iraq. The Western advisors and consultants will tailor the South Sudan to suite the greed of the West – no more.
If the separatists have any reasoning, let them come up with them. We only hear emotional mobilization in the news. One cannot build a nation out of fantasy, hatred and paranoiac attitudes the separatists have in abundance.
Let us first set the foundations for economy and education. Then let us work hard to reduce tribalism and agree on a “South Identity”. Afterwards, we must practice democracy and good governance for some time. When that is achieved, then our future leaders may be in a good position to think carefully for the best of the future of the South.
Good Mr. Minister. You’re wise than many of the naive critics on this site or in the GoSS or for that sake SPLA/M.
Please think deeply.
O Ye Southerner UNITE!
Adam Milawaki, Kansas City
Sudan virus
South Sudan Kenya pipeline is “uneconomical” says oil minister
Lual,
Having achieve ministerial position in the national unity government does not mean all of us southerns are now OK,.
Please when feasibility study,take into consideration the long term befit first.
The more you spend in the short run ,the more you gain in the long run.
We Sudanese especially southern do not develop because we fear long run investment and prefer short run investment through the influence of some foreigners or internal enemies.
In the modern world ,countries like investing on long term business which in the futures yields billion of dollars than the short run.
If you insist than south Sudan after independent should for life depend on the oil pipeline to Khartoum,then you are now submitting the south into another way where Khartoum will dictate some our economic interest in their own benefit.
The southerns and their for sisterly countries brainstormed this decision for quite a long time,before conclude or found these opportunity of constructing oil pipeline through Kenya with the help of Toyota company of Japan.
Now you want break such opportunity with in minute?Are you normal?
Its not wrong to say the south will still continue supply its oil through Khartoum,but you must have alternative for garantee.
Osorubeng-Beng
South Sudan Kenya pipeline is “uneconomical” says oil minister
This is unfortunate statement by Mr. oil minister. I think; he is becoming a true puppet of Arabs against Southern interest.
Madhod
South Sudan Kenya pipeline is “uneconomical” says oil minister
Can Mr. Lual tell us why building a pipeline between South Sudan and Kenya is “uneconomical”? What are some of the factors that make this move uneconomical? Or is your statement purely a political and co-conspired by your bosses-the Islamic regime in Khartoum. I just want to remind Mr. Lual that our democracy and freedom is far more important than what it will cost us to build that pipeline. We are tired of being treated like 2nd class citizens. This is our oil, and we don’t want Khartoum telling us what to do about it. Whether your bosses like it or not, we will construct that pipeline. And please, remind Khartoum that the time is running out, and, because we the southerners can wait to separate from you soon!
The attention of the world is on South Sudan, and I bet will find the cheapest way to pay for the construction of the Pipeline, because we have more friends in the world than Khartoum. It is matter of months, China will divorce from Khartoum very soon, Bashir should sees that coming!!!!