South Sudan and Kenya sign MoU on construction of oil pipeline

abarrelfullabarrelfull wrote on 26 Jan 2012 10:03
Tags: kenya oil pipeline south-sudan

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The Republic of South Sudan and the Republic of Kenya have signed a Memorandum of Understanding (MoU) to build oil pipeline from South Sudan to the Kenyan Port of Lamu. The agreement comes four days after South Sudan passed a resolution in cabinet to shut down the oil operations through the pipeline which passes through Sudan to its sea port of Port Sudan.

South Sudan accused Sudan of stealing its oil while Khartoum claimed it was confiscating the oil for unpaid fees; a claim Juba said was unfounded.

The cabinet also passed another resolution seeking for an alternative oil pipeline to another neighboring country.

A high level delegation from the Republic of Kenya, led by the Prime Minister, Raila Odinga arrived Juba on Tuesday to negotiate the MoU with their South Sudanese counterparts which resulted to the signing ceremony at J-One Palace.

The Kenyan delegation also included its minister for Foreign Affairs, Moses Wetangula; minister for Public Service, Dalmas Otieno; and minister for Energy, Kiraitu Murungi, among others.

South Sudan’s President Salva Kiir Mayardit and Vice President, Dr. Riek Machar Teny, witnessed the signing ceremony. The minister for Foreign Affairs, Nhial Deng and several other ministers and ambassadors were also present at the occasion.

The minister for Petroleum and Mining in South Sudan, Stephen Dhieu Dau and Kenya’s minister for Energy, Kiraitu Murungi, signed the MoU on behalf of their respective governments.

The MoU also provided for installation of fibre optic connections between the two neighboring countries.

In a press statement after the signing ceremony, the two ministers explained that the MoU laid a foundation for economic cooperation between the Republic of South Sudan and the Republic of Kenya.

“The purpose of this MoU is to develop and expand a framework of cooperation and partnership between the Government of the Republic of South Sudan and the Government of the Republic of Kenya on the principles of equality, mutual benefit, mutual understanding, respect and trust,” partly reads the MoU’s text.

The two ministries will work out the details of the agreement on the pipeline and fibre optic and begin the implementation of the two projects.

The MoU pointed out that the two countries will negotiate and agree on transit fees for the oil pipeline which will be based on international practice.

Currently countries, particularly in the region pay less than a dollar per barrel as transit fees.

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