- Written by Peninah Njakwe
South Sudan has finally agreed to transport its oil via a pipeline from Lamu port. The country had earlier said that they would transport their oil by road instead. The pipeline, 2,000 kilometers is estimated to cost approximately USD 3 billion dollars.
The pipeline will allow South Sudan to export its oil via the Kenyan port of Lamu, freeing the landlocked country from reliance on a route through Sudan. The route had earlier this year been shutdown following the two countries disagreement over how much the Juba government should pay to transport its oil output through Sudan. This has however been resolved.
Construction of the pipeline is expected to begin by June 2013 and last two years. It will be able to transport between 700,000 barrels and 1 million barrels of Southern Sudanese crude per day. Though the country says they don’t have the money now, South Sudan has a total of 7 billion in proven reserves.