RSS To Seek Alternative Countries For Oil Refinery
The Republic of South Sudan (RSS) might consider diverting her crude
oil to other countries for refining if Sudan continues charging
exorbitant fees. The Managing Director of Nile Petroleum (Nilepet)
Mangok Kali Mangok has revealed.
05 September 2011
RSS To Seek Alternative Countries For Oil Refinery
Workers drilling for oil at the Greater Nile Petroleum Company in
Amzar [File Photo]

JUBA, 5th August 2011- The Republic of South Sudan (RSS) might
consider diverting her crude oil to other countries for refining if
Sudan continues charging exorbitant fees. The Managing Director of
Nile Petroleum (Nilepet) Mangok Kali Mangok has revealed .

“So we are still negotiating on the high charge that the North sets
for transportation of South Sudan’s oil,” Mangok said adding that the
charge is much higher than what other African countries charge. He
opposed the 32.2 dollars charge per barrel for transportation and
refining of South Sudan’s oil.

“For example African countries like Cameroon and Chad are charging
0.41 dollars per barrel, then why are we being charged 33.2 dollars
per barrel?” Mangok asked.

He said that the timeframe for South and North Sudan to negotiate on
the oil charges was tentatively set before the official declaration of
South Sudan’s Independence on July 9 this year, but the final
agreement was not reached due to unforeseen circumstances.

In a bid to boost the oil industry, South Sudan’s Nile Petroleum
Corporation (Nilepet) earlier on entered into joint venture with
Glencore International; a Swiss-based public company involved in
production, processing, refining and transporting energy products.

The move, according to Mangok Kali Mangok seeks to ensure that crude
oil entitlements from the company and the Republic of South Sudan in
general, find a market in the international arena.

“The joint venture will help the Republic of South Sudan develop its
national oil company through skills transfer and training and will be
responsible for marketing the crude oil from July 09 onwards,” Mangok
said in a statement.

The development comes nearly five months after South Sudan’s Energy
and Mining ministry and Petroliam Nasional Berhad (PETRONAS), a
Malaysian-owned oil and gas company signed a two-year memorandum of
understanding (MoU) aimed at boosting mutual cooperation between the
two parties.

The MoU, signed in Juba, South Sudan’s capital, outlined the overall
principles of cooperation in the oil and gas sector between the
government and the Malaysian oil giants, creating an avenue for
exploiting existing business opportunities.

In January 2008, Petronas, got permission from South Sudan’s
government to begin oil exploration in block 5B, after agreeing to let
Moldova’s Ascom Group keep part of the concession, an official said.

A juba-based Board of Directors for Nile Pet was formed on 13,
November, 2008 by the then Government of South Sudan (GOSS).

Nile Pet is the Government of the Republic of South Sudan (RSS) owned company.

Source: ST, The New Nation
Edited: Gurtong Media
Posted in: Home, Business, Foreign Relations

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