South Sudan pipeline could soon be under construction

South Sudan, the world’s newest state, could soon see the construction of a new oil pipeline bypassing the country's northern neighbour, Sudan. According to reports, the Japanese company Toyota Tsusho has completed a feasibility study of the project and has announced its readiness to begin construction of the pipeline.

The Sudan Herald has reported that the company’s Project General Manager, Yochiro Iwasaki, led a delegation Juba, the capital of South Sudan, to meet with Vice President Riek Machar and discuss the success of the feasibility study. A spokesman for the South Sudanese government, Khamisa Wani-Ndah, said “Within three years oil will start flowing.” 

South Sudan, which had previously transported its oil through a pipeline controlled by Sudan, decided to completely shut down production after a row broke out between the two countries over transport fees. The total shutdown of South Sudan’s 350 000 bpd production came after accusations that Sudan had confiscated US$ 850 million worth of oil, reportedly in lieu of unpaid transit fees.

The news from Toyota Tsusho signals a further step towards the development of a new pipeline for South Sudan; an MOU covering the construction of the pipeline has already been signed with the government of Kenya (the country through which the proposed pipeline will run.

South Sudan has also considered other potential pipeline routes and has signed MOU’s with the governments of Ethiopia and Dijibouti.

Edited from various sources by David Bizley

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