---------- Forwarded message ----------
From: John Ashworth <[email protected]>
Date: Thu, Jun 27, 2013 at 2:24 AM
Subject: [sudan-john-ashworth] South Sudan moves closer to oil
pipeline to the south
To: Group <[email protected]>


In view of Ambassador Page's comments (article 2, below) it might be
worth noting that there is some speculation in Juba that one of the
reasons Khartoum is supporting David Yau Yau's attempts to destabilise
Jonglei State is precisely to prevent international oil companies from
exploring and developing the oil fields in Jonglei.

John

BEGIN

1. South Sudan moves closer to oil pipeline to the south

BBC 26 June 2013 Last updated at 12:29

South Sudan has moved closer to its target of gaining access to a
pipeline to export its oil to the south.

The presidents of Uganda, Kenya and Rwanda have agreed to build two
pipelines across East Africa.

One would run from South Sudan to the Kenyan port city of Lamu and the
other would stretch from Rwanda to Mombasa.

Currently, South Sudan exports its oil through Sudan and supplies are
often disrupted as the two countries disagree over pricing and
security issues.

The three-way agreement between the presidents was confirmed by
Uganda's foreign minister, Sam Kutesa.

Last week, Sudan's President Omar Hassan al-Bashir threatened again to
stop oil flows across its border with South Sudan, unless South Sudan
stops supporting rebels operating across the shared frontier.

South Sudan denies supporting rebels and, in turn, accuses Khartoum of
backing insurgents on its soil.

When South Sudan became independent nearly two years ago, it took 75%
of the oil reserves of Sudan.

However, Sudan retained the pipeline infrastructure, as well as the
refineries and export terminal at Port Sudan on the Red Sea.

East Africa is experiencing an energy boom at the moment, after oil
and gas discoveries in Kenya, Uganda and Tanzania.

New railway

Mr Kutesa said the three countries had also agreed to build a railway
line from Kenya through Uganda to Rwanda.

"It was agreed to revamp the existing railway network and also
construct a standard gauge railway line in Kenya and Uganda and also
extend it to Rwanda," he said.

http://www.bbc.co.uk/news/business-23065592

END1

2. US companies "interested" in South Sudan’s oil, says ambassador

June 26, 2013 (JUBA) - The US Ambassador to Juba, Susan Page said on
Wednesday that companies from her country were interested in South
Sudan’s oil, when asked about the subject at a press conference.

The American government helped negotiate the Comprehensive Peace
Agreement (CPA) between then government of Sudan and Southern rebels
of the Sudan People’s Liberation Movement (SPLM), which allowed the
South to secede in July 2011.

Ambassador Page disclosed that the US has donated $600 million to the
new country in the last six years in aid to towards health, education
and agriculture.

South Sudan’s oil industry is dominated by the companies that did
deals with Khartoum before secession in 2011, with China, Malaysia and
India besides France’s Total which holds a large but unexploited
concession in Jonglei state.

Page pointed out that the US government does not "have oil companies
as part of their machinery of the government" in the same way as other
countries but said that among the US’s "independent" companies "there
is a lot of interest oil and gas companies".

American companies were beginning to come to South Sudan, which she
said was beginning to open up to more wider investment in the oil
industry.

The SPLM government has "divided some of the blocks and sub-divided
some of the blocks that have previously been granted and there is real
interest in a number of American companies", the Ambassador said.

Many US companies are already operating in South Sudan in the field of
exploration and logistics, she added.

In January 2012, South Sudan stopped oil production over a dispute
with Khartoum, which appeared to have been resolved when export of
Southern crude resumed earlier this year.

However, Sudan accused Juba of backing rebels north of the border and
has threatened to stop oil production within two months it continues
to harbour and support them.

Page noted that most international companies want to see a "stable and
peaceful" environment before investing, pointing out that some of the
blocks are in areas that "are not all that secured right now such as
Jonglei state", where the military is fighting a rebel group which the
South claims is backed by Khartoum.

Such issues are "going to be a concern for all big companies" she said
but admitted that the "US would like to see more American companies
here because they bring value and generally turn to have a more open
and transparent process as well as making sure that they helped the
communities where they engage."

South Sudan’s oil sector has been criticised in some quarters for
lacking transparency by analysts and campaigning groups.

Page said encouraging the government to "abide by the contracts that
have already been signed" would be a good thing "because that is very
important for the people to know but also to allow for good deals if
they can be made with American companies.”

(ST) http://www.sudantribune.com/spip.php?article47091

END2
______________________
John Ashworth

Sudan, South Sudan Advisor

[email protected]

+254 725 926 297 (Kenya mobile)
+211 919 695 362 (South Sudan mobile)
+27 79 832 8834 (South Africa mobile)
+44 750 304 1790 (UK/international)
+88 216 4334 0735 (Thuraya satphone)

PO Box 52002 - 00200, Nairobi, Kenya

This is a personal e-mail address and the contents do not necessarily
reflect the views of any organisation

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