South Sudan may have its own oil pipeline


Landlocked South Sudan may soon have its own oil pipeline for Red Sea ports.

The South Sudanese government is considering several oil pipeline options and is talking with companies and governments who may be interested in financing an alternative pipeline.

The country's income relies almost exclusively on oil revenue but, despite independence from Sudan in 2011, its substantial oil wealth is hampered by difficulties in exporting the oil. South Sudan reduced its oil production in 2012 after transit fees were disputed with Sudan.

Following a January meeting between the presidents of the two Sudans, an unconditional agreement was reached to demilitarize the shared Sudanese border and allow oil exports to flow from South Sudan's oil fields north through Sudan's pipelines.

The two presidents have also reached an agreement which calls for the creation of temporary administrative and security arrangements for the disputed oil-rich Abyei region which is claimed by both countries.

Although there is no formal route plan for the South Sudan pipeline, it is possible that construction could begin as early as October according to the independent Sudan Tribune newspaper.

The news will be a positive boost for energy-hungry China and, in particular, CNPC which recently announced a deal to ramp up oil exploration and investment in South Sudan.