Wednesday, July 6, 2011

Southern Sudan said considering oil pipeline through Ethiopia to avoid North

DUBAI - The breakaway region of Sudan, to be known from July 9 as the Republic of Southern Sudan (RoSS), is planning an oil pipeline through Ethiopia as one of its options for circumvent the 2005 oil sharing agreement with Khartoum, South Sudan’s oil minister Dr. Luol Deng said in Dubai on June 28.

Producing more than 70 per cent of Sudan’s oil, the South Sudanese administration feels the 2005 agreement, which calls for a 50-50 sharing of oil revenue between the two entities, is unfair and cannot be implemented.

However, all the oil refineries, storage facilities and ports lie in the Khartoum controlled territory, which receives the crude through two pipelines.

"Oil sharing has been one of the highly contested issues between us (North and South) and we have had continuous discussion over this. For now we will continue with the current mechanism and use North's facilities, but in the future as we gain independence and pump more oil these two pipelines would be insufficient, that is why we are planning to have another one through Ethiopia," said Dr. Deng.

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