Djibouti-Ethiopia-South Sudan Transport Corridor

[layman]

I don't know about the calculation you have made. First as far as I can tell Sudan prior 2011 (i.e., Sudan+S.Sudan) exported 8-10 bill. So 4 bill seems a bit fishy. The dubious number aside. You can read on any webpage (e.g. Wikipedia - if you don't trust it follow the link) about the peace agreement that the oil revenue was to be split 50-50 between 2005 and 2011. When that expires, Sudan come up with 25% to 35% . Which could be a lot but everything has to be done gradually. They can negotiate while using the pipe. It is not fair to just shut the revenue of the north considering it is part of the peace deal. Note that the two countries have not even split their debt. Therefore, their fate is interwoven. Instead of going for the gun they should go for the round table.
About new pipe it is all gimmick if you ask me, why?
-Not suitable geography (mountainous), high insurance cost because kenya has its oil problem
-port facility needs to be developed
-refineries
-hard to find finance (even China didn't want to get involved)
-it will take at least three years (are they going to continue to depend on loans to finance government budget that is crazy)
Believe me it doesn't make sense. I am not saying Sudan is saint in this but the bullish attitude of South Sudan doesn't help.

[Ras Siyan]

Layman has a point, it would have been better if both Sudans came to their senses and reached an agreement that would satisfy both parties since the infrastructure is already in place

But since that isn't the case, Djibouti should take advantage of the current rift between the Sudans and re-route all of South Sudan's trade through Djiboutian ports, including the pipeline.

Originally Posted by abnet

And if they pay one dollar per barrel for Ethiopia and Djibouti its $137 million Dollars for each country ,so this is a win-win bargain for all of the three countries my friend

That's good to hear...We're not demanding as much as Sudan, 137 millions/year seems perfect!

[abnet]

Originally Posted by layman

I don't know about the calculation you have made. First as far as I can tell Sudan prior 2011 (i.e., Sudan+S.Sudan) exported 8-10 bill. So 4 bill seems a bit fishy. The dubious number aside. You can read on any webpage (e.g. Wikipedia - if you don't trust it follow the link) about the peace agreement that the oil revenue was to be split 50-50 between 2005 and 2011. When that expires, Sudan come up with 25% to 35% . Which could be a lot but everything has to be done gradually. They can negotiate while using the pipe. It is not fair to just shut the revenue of the north considering it is part of the peace deal. Note that the two countries have not even split their debt. Therefore, their fate is interwoven. Instead of going for the gun they should go for the round table.
About new pipe it is all gimmick if you ask me, why?
-Not suitable geography (mountainous), high insurance cost because kenya has its oil problem
-port facility needs to be developed
-refineries
-hard to find finance (even China didn't want to get involved)
-it will take at least three years (are they going to continue to depend on loans to finance government budget that is crazy)
Believe me it doesn't make sense. I am not saying Sudan is saint in this but the bullish attitude of South Sudan doesn't help.

The calculation I made came from what South Sudan export of crude oil Which is 350,000 barrels a day (sorry I said 375,000 barrels a day on my previous post) times the days in one year 365 times what the North Sudan want to charge them for using the oil-pipeline $36 USD (I got all the information from the Sudan forum).
Like Ras Siyan said I wish the North and South Sudan solve their problem and reach some agreement ,but from the Addis Ababa negotiation don't think that going to happen.So in this kind of case I don't see any problem offering our support for the construction of this rather important oil-pipline through our country and getting paid on the process.
The $137 million Dollars (or closer) is what we get exporting leather this year .So its not small money for our Dollar starving economy.

[Ras Siyan]

08-07-2012 - Télécommunications Au cœur de l’intégration régionale

Des ministres et des hauts cadres en provenance d’Ethiopie et du Sud Soudan étaient jeudi 05 juillet dernier de passage au sein de la station d’atterrissement d’inforoutes sous marines de Djibouti Télécom, sis à Haramouss.

Le fait en dit long sur l’intérêt majeur que les visiteurs éthiopiens et sud-soudanais accordent au développement des télécommunications dans l’optique de l’intégration des économies régionales.

Ils ont pu par ce biais prendre une pleine mesure du rôle de Djibouti à cet effet.

Ils sont, semble-t-il, répartis confiants en sa position enviable de nœud d’interconnexions qui permet au pays de connecter ses voisins enclavés de la région au reste du monde.

C’est le cas de le dire pour le Sud Soudan.

Puisque ce nouvel Etat indépendant depuis juillet 2011 ne dispose d’aucune infrastructure de télécommunications.

Encore faut-il préciser que le réseau de l’opérateur éthiopien des télécommunications relie le Sud-Soudan au réseau de fibres optiques de Djibouti Télécom.

La parenthèse souligne assez le bien-fondé du mémorandum d’entente tripartite que le ministre djiboutien de l’Economie et des Finances, Ilyas Moussa Dawaleh, et ses homologues éthiopien et sud soudanais, en l’occurrence Sufian Ahmed et Kosti Manibe Ngai, ont conclu au début de février 2012 à Addis Abeba.

L’accord a une portée historique.

Car il stipule une inter-connectivité des réseaux de télécommunications, des oléoducs pétroliers, des infrastructures aussi bien routières et ferroviaires que maritimes et des zones franches de Djibouti jusqu’au Sud Soudan en passant par l’Ethiopie.

En matière de télécommunications, il est question d’étendre toutes les capacités de Djibouti Télécom au Sud Soudan, y compris l’accès au flux du trafic mondial de données d’Internet.

C’est dire combien les télécommunications sont au cœur de grands desseins de l’intégration régionale se dessinant sous nos yeux.

source

[Ras Siyan]

08-07-2012 - Djibouti/Ethiopie/Sud Soudan Ensemble, de grands desseins…

On avait annoncé l’info. C’est fait depuis jeudi 5 juillet dernier au palace Kempinski où le comité tripartite de Djibouti, de l’Ethiopie et du Sud Soudan a clôturé ses travaux de trois jours.

Deuxième du genre, cette importante rencontre a regroupé sur place des officiels djiboutiens avec à leur tête le président des ports et des zones franches, Aboubaker Omar Hadi, une mission éthiopienne conduite par le ministre d’Etat de l’Economie et des Finances, le Dr. Abraham Tekeste, et une délégation sud soudanaise dirigée par la vice-ministre du Pétrole et des Mines, Elizabeth James Bol.

Au cours de leurs assises de trois jours au Kempinski, les trois parties ont discuté de plusieurs dossiers de coopération économique.

Telle la réalisation d’un pipeline qui acheminera du pétrole depuis les champs pétroliers du Sud Soudan jusqu’à Djibouti via l’Ethiopie.

L’aboutissement de ce chantier d’envergure est porteur de retombées alléchantes pour les trois pays en termes de créations d’emplois et de valeur ajoutée.

Un même optimisme entoure le projet de raccordement de nos voisins enclavés au câble en fibre optique de l’opérateur national de télécommunications, en l’occurrence Djibouti Télécom.

Il s’agit pour ses instigateurs de faciliter par ce biais une interconnectivité des entreprises privées et fleurons nationaux de Djibouti, de l’Ethiopie et du Sud Soudan et un accès abordable au reste du monde.

Avec à terme un objectif qui est de doper la compétitivité des unes et des autres dans la double optique de l’intégration régionale et de la globalisation mondiale
Un tel leitmotiv sert également de catalyseur au programme de réseau ferroviaire censé relier Djibouti ville et Djouba en passant Addis Abeba.

Les dessertes de ces futures lignes ferroviaires devront rythmer les échanges commerciaux entre les trois pays à l’avenir.

Mieux, elles s’inscrivent dans la perspective de l’essor du commerce régional suivant les projections concordantes des experts djiboutiens, éthiopiens et sud soudanais.

Autant de grands desseins, que les trois parties entendent réaliser ensemble, vont façonner le devenir commun des populations respectives de Djibouti, de l’Ethiopie et du Sud Soudan.

source

[mwanamwiwa]

South Sudan cant afford two similar projects.The LAPSSET corridor to Lamu has already commenced so we can forget about a pipeline to Djibouti.Also why would SS pay fees to two countries when they can pay just once?

[Yoniii]

Originally Posted by mwanamwiwa

Also why would SS pay fees to two countries when they can pay just once?

What matters the most is obviously how much they have to pay, not who.

[Northern Sudanese]

The oil agreement ended nor in favor of sudan or south sudan. its a loss for both, we in north didn't get our wanted $36 and south sudan didn't get its $0.85. it ended up $11-$10 for transport and additional $15-$16 when adding financial package for the 3 year deal ($3.2 bilion) which makes it $26 for sudan , however south sudans total loss from the barrels is $40 which $26 goes to sudan and rest goes to foreign companies.

[Skyliner123]

Originally Posted by mwanamwiwa

South Sudan cant afford two similar projects.The LAPSSET corridor to Lamu has already commenced so we can forget about a pipeline to Djibouti.Also why would SS pay fees to two countries when they can pay just once?

Dude!

You are so short sighted! First of all, the more choices you have, the lower the cost of traqnsport will get! At this moment, the only choice you have is Port Sudan and guess what, you are paying a crazy 15% or 35% per barrel because you have no other chice what so ever. Be mindful that the international standard is 1% or 2%. If your country had other options to transport the oil, it wouldn't be going through the near economic crisis situation that it is currently undergoing.

Another factor is that your oil would have easier access to the itnernational market if pipelines are built to multiple ports therefore bringing about stability to the ROSS economy as well as the region at large. Also keep in mind that


Editing:
mwanamwiwa, I just saw the Kenyan flag in your avator though I assumked you were a S. Sudanese in the above comment. So let me just add one more sentense to the comment: The more development there is in the region, the more everyone benefits. Lamu/LAPSSET will be one choice; while Port Djibouti will be another but no one wil hogg all the beef by themselves.

[Skyliner123]

An oil pipeline stretching from Juba to Djibouti via Ethiopia is a step closer to reality after regional allies Djibouti, South Sudan and Ethiopia agreed to move to the next step of a tripartite infrastructure deal. The oil pipeline project will cost USD three billion and will start at the beginning of 2013.

The three countries have already signed a Memorandum of Understanding (MoU) on February 2, 2012 to build a pipeline, railway and fibre optic cable from Djibouti to Juba via Ethiopia.
Since then the Tripartite Committee began a feasibility study about the construction project, which gave priority to building an oil pipeline that can be used to export South Sudan’s petroleum. The signing is an important tripartite agreement for the construction and operation of an oil pipeline from the fields of Southern Sudan to Djibouti through Ethiopia.
According to our sources, the Ethiopian Minister of Finance and Economic Development (MoFED) Sufian Ahmed, Djiboutian Minister of Economy and Finance Ilyas Moussa Dawaleh and South Sudan petroleum and Mines Minister Stephen Dhieu Dau met in Addis Ababa on Friday, September 28 at the MoFED office and signed an agreement for the next stage of the pipeline project.
Haji Ibssa, public relations head of MoFED, told Capital that the three Ministers have met in the past week. He said that they did not sign any new deal but our sources confirmed that the three countries have agreed to realize the construction of the pipeline in the second quarter of the coming year.
The Djiboutian Minister of Economy and Finance, Ilyas Moussa Dawaleh, who spoke at the signing ceremony, immediately hailed the historical dimension of this new tripartite agreement as one-step further forward.
Dawaleh said he was confident of a win-win partnership coming from the implementation of this major project and was keen to emphasize the commitment of the three Nations’ leaders to lay the groundwork for successful regional economic cooperation.
In his speech, the Minister of Economy and Finance reaffirmed the strong commitment of the Government of Djibouti to spare no effort to complete the oil pipeline project in a timely manner.
The officials said that the joint committee finalized the initial study for the implementation of the pipeline project.
In the next few months a detailed feasibility study will be completed. Construction will begin after six months, and should cost around USD three billion although the exact amount will not be known until the study is completed.
Several international firms have expressed an interest in financing the endeavour including companies from the USA and Japan but sources said negotiations are still in the early stages.
According to our sources, China will also be part of the finance source. According to experts, who have intimate knowledge about the pipeline project, the South Sudan’s oil export via Ethiopia is economically feasible than using Port Sudan, because the Port of Djibouti via Ethiopia is more closer.
According to the initial study, the pipeline construction project will be finalized within 36 months.
The regional allies, Ethiopia, the oil-rich South Sudan (both are landlocked countries) and Djibouti have also planned to connect by railway to boost trade relations. Currently, the railway project that connects Ethiopia with the Port of Djibouti and the under construction railway project to the Tadjoura Port will help boost the nations’ trade relation.
The other project that the three countries agreed to implement is the laying out of fiber optics cable (an international telecom line) from Djibouti via Ethiopia to South Sudan.

Source: Reporter

[Ras Siyan]

Good news!

[popa1980]

SS cant decide. Surely it would be better for a line via to Mombassa as Kenya could share the cost of it to transport its own oil?

And Kenya is less mountainous than Ethiopia so I assume it would be cheaper/easier to build the line.

[Ras Siyan]

East African Pipeline Nearer to Reality

October 9th, 2012

(Horntrade) – Ethiopia and South Sudan have reached an agreement to proceed to the next step of the three way deal between Juba and Djibouti through Ethiopia. The project is expected to cost 3 billion US dollars to completion. It is expected that the project will be initiated next year.

A Memorandum of Understanding was signed between the three countries last February to launch the construction of the pipeline and other infrastructural projects such as a railway and fiber optic cable.

A feasibility study commissioned at the time has given priority to the construction of the oil pipeline to facilitate the export of South Sudanese petroleum through Port Djibouti.

Sufian Ahmed (Ethiopian Minister of Finance and Economic Development), Stephen Dhieu Dau (South Sudan petroleum and Mines Minister) and Ilyas Moussa Dawaleh (Djiboutian Minister of Economy and Finance) met in Addis Ababa last week to initiate the next stage of the project according to sources.

The agreement establishes that the construction of the pipeline will begin in the second quarter of the next year noted the sources. The tripartite agreement is a win-win collaboration for the three countries involved and in fostering regional economic cooperation said Dawaleh.

It is expected that the joint committee will complete a detailed feasibility study in the up-coming months in anticipation of commencing construction in six months. It is expected that financing for the endeavor will come from international financiers including China.

source

[Skyliner123]

Originally Posted by popa1980

SS cant decide. Surely it would be better for a line via to Mombassa as Kenya could share the cost of it to transport its own oil?

And Kenya is less mountainous than Ethiopia so I assume it would be cheaper/easier to build the line.

The problem that South Sudan has right now is the fact that North Sudan has a monopoly of oil pipelines. Therefore, it is strategically important that all the pipelines via Kenya and via Ethiopia be built from a SOuth Sudanese point of view. There is no need for Kenya to be the only alternative line and the competition comming from Port Djibouti will be great for the entire region including Kenya itself.

[G.O.E.T.I.A]

^ agreed.

[Ras Siyan]

Toyota Interested in Financing the Juba-Djibouti Pipeline

Tuesday, 30 October 2012

The Japanese Toyota Tsusho Corporation has expressed interest in the financing and construction of the pipeline extending from Juba to Port Djibouti through Ethiopia.

The Japanese company is interested in undertaking the project expected to be launched in the second quarter of the coming year according to sources in the Japanese Embassy here in Ethiopia.

Toyota is the second company, next to an anonymous US company to express an interest in financing the infrastructural project tentatively expected to cost 3 billion US dollar.
It is to be remembered that a Memorandum of Understanding for the construction of the project was signed between Southern Sudan, Djibouti and Ethiopia earlier this year.

The agreement establishes the construction a pipeline, a railway system and fiber optics cable line to stretch between Juba and Djibouti via Ethiopia.

The next stage of the pipeline project was approved by high level representatives from the three countries just last month.
It is expected that a detailed feasibility study will be completed in the coming few months and the construction will begin within six months. The initial study had estimated that the construction of the pipeline will be completed within 3 months for 3 billion US dollars.

source

[Yoniii]

Only 3 months? Great news either way, I'd be glad if the contract went to a Japanese company (quality).

[Ras Siyan]

11-01-2013 - Projet de pipeline pétrolier entre Djibouti, l’Ethiopie et le Sud-Soudan: Les parlementaires valident l’accord tripartite

Les membres de la commission parlementaire des Affaires Etrangères ont rencontré hier au siège provisoire de l’Assemblée nationale le ministre de l’Economie et des Finances, Ilyas Moussa Dawaleh, et le ministre de l’Equipement et des Transports, Mohamed Moussa Ibrahim Balala, avec lesquels ils ont débattu du bien-fondé et des retombées du protocole d’accord relatif au projet de développement, de construction et d’exploitation du pipeline pétrolier que Djibouti, l’Ethiopie et le Sud-Soudan ont conclu vers la fin septembre 2012 à Addis-Abeba, la capitale éthiopienne.


Citons en l’occurrence le ministre de l’Economie et des Finances, Ilyas Moussa Dawaleh, et son collègue de l’Equipement et des Transports, Mohamed Moussa Ibrahim Balala, qui étaient en compagnie du président de l’Autorité des Ports et Zones Franches de Djibouti, Aboubaker Omar Hadi, du secrétaire général du Ministère des Affaires Etrangères et de la Coopération Internationale, Mohamed Ali Hassan, et du directeur du financement extérieur du MEFIP, Almis Mohamed Abdillahi, lors de cette séance de travail.

Les députés et leurs interlocuteurs ont discuté du protocole d’accord relatif au projet de développement, de construction et d’exploitation du pipeline pétrolier que Djibouti, l’Ethiopie et le Sud-Soudan ont conclu vers la fin septembre 2012 à Addis-Abeba, la capitale éthiopienne.

Il importe de souligner que des signataires de l’accord tripartite souhaitent non seulement tirer profit de nombreux avantages inhérents au projet en question mais aussi de créer une synergie des économies au niveau régional.

Pour le nouvel Etat du Sud-Soudan, l’enjeu est essentiellement la consolidation de son indépendance si difficilement acquise en se dotant d’infrastructures pour acheminer son pétrole vers les pays tiers sans dépendre du Soudan du nord.

De leur côté, Djibouti et l’Ethiopie entendent mettre à profit le transit du pétrole sud-soudanais afin d’impulser une nouvelle dynamique au processus de leur développement économique et social en cette période où la croissance mondiale est en berne.

Par ailleurs, les installations portuaires de Djibouti, qui constituent le maillon final des infrastructures de pipeline, sont considérées comme des atouts majeurs pour notre économie dans la mesure où tous les produits acheminés via le pipeline pétrolier seront exportés à partir de la plateforme portuaire de Djibouti.

Selon le ministre de l’Economie et des Finances, cet accord intergouvernemental, qui vise la construction et l’exploitation d’un pipeline pétrolier entre le Sud Soudan et Djibouti en passant par l’Ethiopie, aura des retombées économiques extraordinaires pour notre pays.

"Il est question dans une première phase de faire transiter 600 000 barils/jour à travers ce pipeline.

Il faut savoir que les réserves du Sud soudan sont estimées à
24 milliards de barils, et par conséquent il faut s’attendre à ce que au fur et à mesure que les champs pétrolifères seront exploités, le volume qui transitera par le pipeline évoluera dans les mêmes grandeurs", a-t-il ajouté devant les parlementaires.

En outre, Ilyas Moussa Dawaleh a évoqué les vastes projets en cours d’élaboration avec la plus grande des entreprises chinoises, la SINOPEC. "

Nos échanges sont très promoteurs avec la société SINOPEC.

Nous envisageons avec ce partenaire la réalisation de nouvelles infrastructures portuaires, mais également l’installation d’une raffinerie, a-t-il indiqué en substance.

Pour sa part, le ministre de l’Equipement et des Transports, Mohamed Moussa Ibrahim Balala, a précisé que l’accord conclu et signé pose les principes du partenariat entre les trois pays et institue le régime juridique qui va gouverner tous les contrats relatifs au projet de la construction du pipeline.

Au cours de leurs échanges avec les ministres concernés, les députés ont posé diverses questions sur les projections chiffrées du gouvernement, qu’il s’agisse des retombées économiques directes ou indirectes de ce vaste projet, aussi bien pour la population Djiboutienne que pour la République de Djibouti.

Les réponses apportées ont, semble t-il été plus que satisfaisantes.

Puisqu’au terme de la réunion d’hier, les députés ont émis un avis favorable en vue de l’adoption de ce projet de loi lors de la prochaine séance publique de l’Assemblée nationale.

source
[QUOTE]

11-01-2013 - Oil pipeline project between Djibouti, Ethiopia and South Sudan: MPs validate the tripartite agreement

The members of the Parliamentary Committee on Foreign Affairs met yesterday at the temporary headquarters of the National Assembly by the Minister of Economy and Finance, Ilyas Moussa Dawaleh, and the Minister of Equipment and Transport, Mohamed Moussa Ibrahim Balala, with whom they discussed the merits and benefits of the MoU on the project development, construction and operation of the oil pipeline that Djibouti, Ethiopia and South Sudan have signed to end of September 2012 in Addis Ababa, the Ethiopian capital.


Include in this case the Minister of Economy and Finance, Ilyas Moussa Dawaleh and colleague of Equipment and Transport, Mohamed Moussa Ibrahim Balala, who were with the president of the Ports Authority and Zones Djibouti, Aboubaker Omar Hadi, Secretary General, Ministry of Foreign Affairs and International Cooperation Mohamed Ali Hassan, the director of external financing MEFIP, Almis Mohamed Abdillahi, during the work session.

MPs and their interlocutors discussed the Memorandum of Understanding for the project development, construction and operation of the oil pipeline that Djibouti, Ethiopia and Southern Sudan concluded in late September 2012, Addis Ababa, the Ethiopian capital.

It is important to emphasize that the tripartite agreement signed not only want to take advantage of many benefits of the project in question but also to create a synergy of regional economies.

To the new state of South Sudan, the issue is primarily the consolidation of its hard-won independence so by establishing infrastructure to transport its oil to third countries without relying on northern Sudan.

For their part, Djibouti and Ethiopia agreed to use the transit of oil from South Sudan to a new dynamic in the process of their social and economic development at a time when global growth is lowered.

In addition, the port facilities in Djibouti, which is the final link of pipeline infrastructure are considered a major asset for our economy to the extent that all products shipped via oil pipeline will be exported from the platform port of Djibouti .

According to the Minister of Economy and Finance, the intergovernmental agreement, which involves the construction and operation of an oil pipeline between the South Sudan and Djibouti through Ethiopia has tremendous economic benefits to our country.

"It is a question in a first phase to pass 600,000 barrels / day through the pipeline.

You should know that South Sudan's reserves are estimated at
24 billion barrels, and therefore it is expected that gradually as the oil fields are exploited, the volume that will pass through the pipeline will evolve in the same quantities, "he said before the Parliament.

In addition, Ilyas Moussa spoke Dawaleh large projects under development with the largest Chinese companies, SINOPEC. Our exchanges are developers with the company SINOPEC.

We envision that partner with the construction of new port infrastructure, but also the installation of a refinery, he said in substance.

For his part, the Minister of Equipment and Transport, Mohamed Moussa Ibrahim Balala, said that the agreement signed and lays down the principles of the partnership between the three countries and establishes the legal regime that will govern all contracts relating to project pipeline.

During their discussions with ministers, MPs asked various questions about the government's projected figures, be it direct or indirect economic benefits of this vast project, both for the population and for the Djibouti Republic Djibouti.

The answers were, seems he was more than satisfactory.

Because at the end of yesterday's meeting, members expressed a favorable opinion to the adoption of this bill at the next sitting of the National Assembly.

[Ras Siyan]

Ethiopia: Ministerial Delegation in Djibouti

On Friday last week (January 18th), the Minister of Finance, Ato Sufian Ahmed headed a delegation to Djibouti on a working visit. Minister Sufian met and held talks with President Ismail Omar Guelleh and with Djibouti's Minister of Economy and Finance, Mr. Ilyas Moussa Dawaleh and other ministers.

The talks covered the major projects that Ethiopia and Djibouti are developing. In an interview after the discussions, Minister Sufian welcomed the excellent relations between Djibouti and Ethiopia and said the aim of his visit was to enable both parties to consult on various aspects of economic projects being developed. Mr. Dawaleh said that these were important for both countries and for the region, mentioning the second power transmission line via Galafi, the project of a cross-border water supply and the monitoring and management of the two railway lines.

He added that they had discussed a common strategy to complete the pipeline project between Juba, Addis Ababa and Djibouti, the fiber optic cable project and extension of the railway to the town of Juba. Mr. Dawaleh also said it had just been confirmed that the construction of the road between Dire Dawa and Djibouti would begin in the coming months. This would be a highway to serve Dire Dawa and the large industrial area that Ethiopia was now planning in that area, he said. The minister stressed that these projects would help to curb the specter of unemployment and job insecurity.

source

[African Lion]

Good news all around. Thanks Ras Siyan, your countries owes you a great deal of gratitude for your work and enthusiasm for the Djibouti.