Bloomberg News

Southern Sudan Considers Building Oil Pipeline to Kenya

July 06, 2011

July 6 (Bloomberg) -- Southern Sudan is discussing with oil companies the possibility of building a link to an existing pipeline to Kisumu, Kenya to export its crude, the region’s minister of road and transport, Anthony Lino Makana, said today.

“To put in a pipeline is not a hard thing for us,” Makana told reporters in Juba, the capital of Southern Sudan, which will become the world’s newest independent nation on July 9.

Southern Sudan will assume control of about 75 percent of Sudan’s current oil production of 490,000 barrels a day when it secedes from Sudan. Most of Sudan’s crude is pumped by China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd and India’s Oil & Natural Gas Corp.

Negotiators from the Sudanese government and the Southern Sudan administration agreed in May that the south will pay the north for the use of pipelines and facilities at Port Sudan on the Red Sea to export its crude. They have not yet reached accord on the level of the fees.

To contact the reporter on this story: Matt Richmond in Juba at mrichmond10@bloomberg.net

To contact the editor responsible for this story: Karl Maier at kmaier2@bloomberg.net


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