South Sudan may seek another route for oil flow – reports

JUBA – South Sudan government is worried by recent closure of oil flow to the international market through the Red Sea region of Sudan with officials quoted by Sudan Tribune hinting at resumption of the 2013 plans to construct oil pipeline through Kenya’s Lamu Port.

Last week, Sudanese authorities said anti-government protesters in Port Sudan closed the flow of South Sudanese oil.

Late Sunday, the authorities reached deal after meeting protesters disgruntled with a peace deal that Sudan’s transitional government struck with rebel groups in October 2020 paving way for resumption.

However, a senior South Sudan government official said the government is worried about the closure of the pipeline by the protesters and hinted at intention to construct a new pipeline through Kenya.

“Recent developments in Sudan have interrupted the flow of our oil and the leadership has advised that we resume talks with companies which carried out feasibility studies to explore ways we can avoid such incidents in future,” the unnamed official is quoted by Sudan Tribune as saying.

The source said a Japanese firm which completed feasibility studies on the Lamu route in 2013 has indicated interest in resuming talks with the authorities.

“We have three companies which have already indicated their readiness. There are Japanese and American companies which have expressed interest to jointly fund the project on a build, own, operate and transfer (BOOT) basis. They need approval of the president,” the source said.

“The minister of finance is working so that a team of experts is permitted to resume discussions on the way forward,” the source added.