
Audio By Carbonatix
Landlocked South Sudan has signed a second oil pipeline deal in a bid to reduce its dependence on Sudan - amid a deepening oil crisis.The only export route for southern oil - which makes up 98% of its budget - is via its northern neighbour.The latest plan is to build a pipeline to the port of Djibouti on the Red Sea via neighbouring Ethiopia.South Sudan last month stopped production in a transit fees row and accused Khartoum of stealing its oil.A memorandum of understanding was signed during talks in the Ethiopian capital, Addis Ababa, earlier this month, South Sudan's Minister for Information Barnaba Marial Benjamin told the AFP news agency.Chinese, US and European companies have shown interest in carrying out feasibility studies, Mr Benjamin said.Djibouti - on the Gulf of Aden at the entrance to the Red Sea - is at least 1,000km (625 miles)away from South Sudan's oil fields, and crosses remote, difficult terrain where South Sudanese and other militia groups operate.Last month, South Sudan's government signed a deal with Kenya to link its oil fields to the port of Lamu.Industry analysts say such a pipeline would usually take at least three years to build and cost up to $4bn (£2.6bn).South Sudan and Sudan - who fought a bitter civil war for decades and split in July - remain at loggerheads, especially over oil on which both countries depend almost entirely for their revenues.The south has the bulk of the oil - but the north has the pipeline, refinery and the export terminal at Port Sudan on the Red Sea.They have never agreed on the transit fees that the south should pay Khartoum for pumping oil through its pipelines and using Sudan's oil export infrastructure.President Salva Kiir of South Sudan recently accused Sudan of stealing crude oil worth $815m (£518m).Khartoum has admitted to confiscating some for unpaid fees - prompting South Sudan to halt all production.President Kiir said his nation would rather struggle for a bit than continue to hand over its oil revenues to the old enemies in Khartoum.Fresh talks over the oil crisis are scheduled for Friday in Addis Ababa.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Searching for a Ghost in Toronto: When political outrage runs out of idea
24 minutes -
Africans must go… But to where?
37 minutes -
SIMS executive urges community banks, fintechs to partner for deeper financial inclusion
54 minutes -
NPP beats NDC with 49% support in new APL national vote tracker
57 minutes -
Business incubators as a de-Risking tool for SME financing in Ghana
59 minutes -
Why Ghana can’t ignore plastic pollution and marine litter: A World Ocean Day reflection
1 hour -
Ghana’s economy set for 5.9-6.1% growth in 2026 despite Middle East tensions – Standard Bank Research
1 hour -
Kennedy Agyapong’s statements undermine NPP’s good name – Ahiagbah
1 hour -
I will not rest until Bawumia becomes Ghana’s President in 2028 – Wontumi
1 hour -
Ignore the distractions – Sammi Awuku urges Bawumia
2 hours -
NCPTA backs GES ban on extravagant graduation ceremonies in basic schools
2 hours -
Bibiani NPP coordinators demand resignation of Western North Regional Chairman over mass disqualification
2 hours -
UTAG gives government June 30 deadline to resolve welfare issues or face strike
2 hours -
Ghana’s non-traditional exports exceed $5bn mark
2 hours -
Stanbic Bank rewards FIFA World Cup winners and launches new Visa local card usage initiative
2 hours