Kenya, South Sudan to seal crude oil pipeline deal

Last Updated 14 years ago by Kenya Engineer

Kenya and South Sudan are set to sign an inter-governmental agreement on the construction and operation of a crude oil pipeline between the two countries next week.

South Sudan Ambassador to Kenya Majok Guangdong told journalist in Nairobi that the ministries of foreign affairs of the two neighboring countries are currently working closely to finalize the agreement.

“Senior government officials from both countries are expected to attend the launch of the construction of the Lamu port infrastructure project on Monday during which a crude pipeline deal with be signed,” Guangdong said in a statement read on his behalf by Second Secretary at the embassy Pauline Malok.

The project will include the construction of a road, rail and oil pipeline to linked landlocked South Sudan and Ethiopia to the Indian Ocean. This announcement comes in the wake of media reports that the Lamu infrastructure project is facing challenges.

According to the statement, when complete, the pipeline will provide an alternative route for oil exports which are currently transported through Khartoum in Sudan.

According to South Sudan, government officials from member states of Inter Governmental Authority on Development (IGAD) members are also expected to be attend the launch of the construction.

Malok noted that the project is one of the biggest infrastructure projects in the region. “The project cannot therefore be completed in a short period due to the huge capital infrastructure required,” she said.

“However, as South Sudan, we are committed to the commencement of the project as it will result in huge socio-economic benefit to both countries,” she said.

“We are optimistic that the negotiations with Sudan that are going on in Addis Ababa, Ethiopia will bear fruit and lead to the normalization of oil sector,” he said.

Source:Xinhua