---------- Forwarded message ----------
From: John Ashworth <[email protected]>
Date: Sat, Apr 14, 2012 at 10:52 AM
Subject: [sudan-john-ashworth] Japanese firm completes South Sudan
pipeline study
To: Group <[email protected]>


S.Sudan: Japan firm completes Kenya pipeline study

NAIROBI, April 13 | Fri Apr 13, 2012 11:59am EDT

(Reuters) - South Sudan said Toyota Tsusho would soon make a financial
proposal on the construction of a pipeline to transport the country's
oil to a port in Kenya for export, after the Japanese firm completed a
feasibility study.

In January, South Sudan signed an agreement with neighbouring Kenya,
the region's largest economy, to build the pipeline to connect its oil
fields with the Kenyan port of Lamu, which is under construction.

Landlocked South Sudan seceded from Sudan last year, but the two
countries are fighting over a vital oilfield on their border after
tensions rose following a dispute over how much the Juba government
should pay to transport its oil output through Sudan to Djibouti's Red
Sea port.

Speaking in Nairobi, Pagan Amum, South Sudan's lead negotiator in
talks to resolve the dispute with Sudan, said Toyota Tsusho was
expected to begin putting together a financial package for the
pipeline, the cost of which has yet to be made public.

"Toyota Tsusho of Japan has completed feasibility studies for the
building of the pipeline to Lamu and are putting together a financial
proposal to begin construction of the pipeline," Amum told a news
conference.

South Sudan is also considering building another pipeline through
Ethiopia and Djibouti as well as using trucks to move crude to the
port of Mombasa.

South Sudan shut its roughly 350,000 barrel-per-day oil output in
January in a row over how much it should pay to export crude via
pipelines and facilities in Sudan.

Oil accounted for about 98 percent of the new nation's state revenues,
and officials have been scrambling for ways to make up for the loss.

China is the biggest buyer of oil from Sudan and South Sudan,
purchasing some 12.99 million barrels last year. That amounted to 5
percent of last year's crude imports by China, which is also the top
investor in South Sudan's oilfields.     (Reporting by Yara Bayoumy;
Writing by George Obulutsa; Editing by James Macharia)

http://www.reuters.com/article/2012/04/13/southsudan-pipeline-idUSL6E8FD4OK20120413

END
______________________
John Ashworth

Sudan, South Sudan Advisor

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