10 August 2012, Sweetcrude, NAIROBI – SOUTH Sudan says a proposed crude oil pipeline that will transport its crude oil through Kenya to the Indian Ocean for export will cost about $3 billion.
Reuters quoted South Sudanese finance minister Kosti Manibe as disclosing this on Friday.
“The pipeline will cost approximately $3 billion dollars,” Manibe told a press conference in Kenya’s capital of Nairobi.
He added: “We don’t need to have the money right now, we have the reserves. South Sudan will definitely have equity in the pipeline”.
The young African nation expects to put up its oil as collateral against the cost of building the pipeline to export to world markets.
South Sudan and Kenya earlier this year signed the agreement that will allow the former to built the pipeline to take crude from its oilfields to the port of Lamu which is currently undergoing significant development.
South Sudan split from neighbour to the north Sudan in July last year and the two have largely been locked in a tussle over the issue of oil revenue sharing, the former taking around three quarters of the enlarged territory’s oil resources when they split.
An agreement was reached last weekend which will continue to see oil heading through Sudan’s infrastructure for export from Port Sudan.
South Sudan’s pipeline plans will, however, have a significant impact on the future role of Sudan in exporting its neighbour’s crude.
