South Sudan | Oil News & Developments

[chiefayic2]

IMATONGAS Reduces Fuel Prices

20 March 2012

IMATONGAS, a locally owned South Sudanese fuel products company with several fuel stations in the country, has slashed its pump prices for diesel and petrol by 8% effective Monday 19/3/12.

Diesel and Petrol will now retail for 5.5 South Sudanese Pounds (SSP) per liter down from 6 SSP. Both products used to retail at almost 2 US$. This price reduction will apply all over the company’s outlets in Juba, Bor and Torit.

The CEO and founder of IMATONGAS, Warille Benjamin Warille, said this reduction will help the economy of the country by reducing local transport costs and commodity prices, and also strengthen the company’s position in the market.

“We believe this reduction will contribute positively to the government’s efforts to reduce inflation in the new country. Inflation has reduced to 42.2% last month compared to 47.83% in January after the government streamlined taxation and removed illegal roadblocks and taxes.” Eng. Warille Benjamin said.

More Here

[Taharqa]

Originally Posted by chiefayic2

Oil Companies Given Deadline To Relocate From Khartoum
JUBA, 20th March 2012

20th March 2012 is the deadline for oil companies to relocate their headquarters from Khartoum to South Sudan according to the Deputy Minister of Petroleum, Ms. Elizabeth James Bol based on a ministerial order circulated in February 2012.



A view of the Heglig oil field in Unity State [File photo]

“We gave them the 20th March 2012 deadline; they should relocate their headquarters to Juba. They respected that ministerial order and by 16th March they had a comprehensive report on how they plan to comply and the challenges they are facing,” Elizabeth said.

She said that the Ministry is ready to mediate between the companies and the Khartoum government in case of any obstacle in their relocation plan.

“The relocation is in terms of data not the buildings. They should move the data in software and the related hardware. The data is the property of the Government of South Sudan,” she explained

For your info Heglig belongs to Sudan and is located in Southern Kordufan State.

[Kulang]

Originally Posted by Taharqa

For your info Heglig belongs to Sudan and is located in Southern Kordufan State.

For your info, in 1999 when oil was discovered in Panthou town of Ruweng county, Unity state, your government illegally annexed it to the north and renamed Panthou to Heglig(to create confusion that you display).
According the the 1956 border it is in South Sudan.

[kitayabi]

Originally Posted by Kulang

For your info, in 1999 when oil was discovered in Panthou town of Ruweng county, Unity state, your government illegally annexed it to the north and renamed Panthou to Heglig(to create confusion that you display).
According the the 1956 border it is in South Sudan.

Its such unfounded assertions that make it impossible to negotiate with the South.

[Kulang]

Originally Posted by kitayabi

Its such unfounded assertions that make it impossible to negotiate with the South.

Yes, Kitayabi blame all the failures of Addis Ababa negotiations on the South.

[chiefayic2]

India, South Sudan in oil infra talks

By: Utpal Bhaskar

Tue, Mar 27 2012 (New Delhi) - Reinforcing India’s efforts to secure energy resources overseas, state-owned Oil and Natural Gas Corp. Ltd (ONGC) is in talks with South Sudan to help it build oil pipelines, crude oil stores and refineries in the newly formed African nation.

The proposed investment by ONGC, which may run into billions of dollars, assumes significance as the newly formed African nation stopped and capped crude oil production from all its 900 wells in January.

“We are in talks with South Sudan for developing their hydrocarbon infrastructure. This involves the entire value chain and even refining facilities,” a senior ONGC executive said, requesting anonymity.

More Here

[chiefayic2]

[chiefayic2]

New managing director of South Sudan's Nile Petroleum Corporation on the company's potential


By Mading Ngor | Thursday, 22 March 2012

(Juba, NSV, South Sudan) - Paul Adong Deng, the new managing director for South Sudan's premier oil company, Nile Petroleum, recently outlined challenges and opportunities awaiting the company.

Mr. Paul said South Sudan's bold decision to shut down oil pipelines may serve as a boon for the company, as it would allow it to train and recruit personelle to propel the company forward.

Click here for the interview

[chiefayic2]

Feasibility is done, hope they quickly go to next stage.....

[Kulang]

South Sudan’s oil pipeline construction will commence soon

June 14, 2012 (JUBA) – South Sudan may soon see commencement of implementation of an alternative vital joint oil pipeline project with Kenya that would transport the new nation’s crude oil to the international market and revive its staggering economy.

South Sudan shut down its oil production last January accusing its northern neighbor, Sudan, of stealing its oil which passed through Sudan’s pipelines to its Red Sea Port.

Khartoum justified the action, arguing that the new nation which broke away from it in July 2011 had not been paying transit fee.

The two sides have not reached an agreement on how much the transit fee should be as Khartoum asked for $36 a barrel while Juba offered over half a dollar per barrel, arguing that this was in accordance with the international practice.

South Sudan has exerted efforts to build an alternative oil pipeline through East Africa to the Indian Ocean and had recently signed a Memorandum of Understanding (MoU) with Kenya to build the pipeline.

A leading Japanese Toyota Tsusho Corporation has reported completion of feasibility study of the pipeline project and ready to sign contract with the government in order to commence the construction.

The Project General Manager of the company, Yoichiro Iwasaki, on Tuesday led a delegation to Juba and met with the South Sudan Vice President, Riek Machar, during which the company reported on the success of the feasibility study and readiness to enter into contract with the government.

The Vice President’s Press Secretary, James Gatdet Dak, told the Sudan Tribune that the company was ready to shoulder the financing of the project and will work out with the ministry of Petroleum and Mining in the contract a mechanism for repayment by the government.

Juba also plans to build another alternative pipeline through Ethiopia to the port in Djibouti and a separate MoU was also signed with the two concerned governments.

Related projects are also underway to build a number of refineries in South Sudan in order to provide fuel domestically and export its surplus products to the neighboring countries.

International oil companies assure of discovery of more oil reserves in South Sudan and predict that the oil production may quickly reach over 500,000 barrels a day from the current 350,000 in the next few years.

The shutdown of the oil production has affected the economy of South Sudan as it constituted 98% of the total annual revenues and was the only export item that used to bring in hard currency to the nation.

Khartoum’s economy has also suffered from the oil shutdown and shock of losing 50% share of South Sudan’s oil revenues after independence.

ST

[chiefayic2]

It's surely great news.....If Toyota is going to help in financing it, as reported.

[bh2010]

This is really good news and I'm crossing my fingers that Toyota goes through with it....But why are we planning two pipelines (Djibouti & lamu)? isn't one enough or has the current crisis with N. Sudan scared us so much that we can't trust any one country enough? I don't think we can afford two, that money could be spent better.

Great post Kulang

[Samanii]

With all due respect to my Southern Brothers, you really put too much faith into your government and its media. I do wish you well and if a pipeline to Kenya is what you want, that is your business. But try and recall the statements made by the government especially Dr. Machar in the beginning of the conflict that a pipeline would be built in 6-8 months. Its been 6 months and nothing. Several Independent organisations have already spoke about the high cost and difficultly building the pipeline due to many factors including geography, insecurity and the cost of running it. As you know it is uphill from South Sudan to Kenya and Djibouti. It is downstream to Sudan and port Sudan. So its not impossible, but ridiculous. Many have termed it the ‘pipeline dream’!!

Second point I would like to make on you video clip, again with all due respect to South Sudan television and its viewers integrity. But that white man shown with Dr. Machar does not look like Japanese Mr. Youchiro Kawasaki.

Like I said, all the best, no hard feelings and keep dreaming.

[Samanii]

ANALYSIS - S.Sudan-Kenya pipeline unlikely to see light of day
Thu Oct 6, 2011 12:43pm GMT

By Hereward Holland

JUBA, Oct 6 (Reuters) - A proposal by South Sudan to build an oil pipeline to Kenya and end dependence on North Sudan to export its crude has little prospect of becoming viable in the foreseeable future, because it requires fresh oil finds and an end to widespread violence.

Landlocked South Sudan took two-thirds of Sudan's 500,000 barrels a day of oil production when it became independent in July, but it is now locked in a row with Khartoum over the use of the northern pipeline to the Red Sea.

The South, which produces around 300,000 bpd but has no refinery or pipeline, has accused its former civil war foe of waging an economic war by demanding a fee of $32 per barrel to use the northern pipeline.

To end its dependence, South Sudan has held talks with Toyota Kenya over a pipeline to Lamu, where Kenya wants to build a port and refinery. Southern officials have also talked to other firms about connecting to an existing Kenyan pipeline from Eldoret to the port of Mombasa.

But analysts and diplomats say a Kenya pipeline would not be viable based on current reserve estimates, because output would be rapidly declining by the time it is completed.

A solution is more likely to come if China exerts pressure on both sides to reach agreement, removing the need for a new pipeline.

Oil industry sources say Khartoum overpumped some fields in recent years to get maximum revenue before the South broke away.

Southern output will decline to 200,000 bpd by 2016 and to 160,000 by 2018 before falling even further, according to estimates by the European Coalition on Oil in Sudan, comprising research groups, non-governmental organisations and activists.

"The pipeline is not viable currently because of the lack of certainty over the South Sudan's reserve base. Perhaps it would be viable if one day significant oil discoveries are made in South Sudan's underexplored blocks," said independent analyst Adrian J. Browne.

South Sudan said the Lamu pipeline would cost around $1.5 billion, but analysts say construction would be a challenge because it must cross the Sudd swamp, one of the world's largest wetlands, and mountains to reach the Indian Ocean.

"If, as many analysts have suggested, oil production is set to peak in the next year, the construction of an additional pipeline doesn't make fiscal sense for a country facing so many development needs," said Dana Wilkins from Global Witness, which has done extensive research on South Sudan's oil economy.

SECURITY, NEW DISCOVERIES?

A pipeline would also require a large security force, because it would cross regions in South Sudan prone to tribal and rebel violence and the bandit-ridden terrain of northern Kenya.

South Sudan, a poor country struggling to set up efficient state institutions, has been unable to contain violence in its main oil state of Unity and other regions, which has led to 3,000 deaths this year.

"From an investor's perspective, given the political climate and the threat of possible insurgent attacks on a pipeline, which is an easy target, there is going to be a very serious insurance premium to protect the pipeline," said Harry Verhoeven, a PhD candidate focussing on Sudan's economy at Oxford University.

Analysts say only significant new discoveries in the underexplored Block B area in Jonglei state -- where France's Total holds a license -- would build a case for a pipeline.

"Perhaps it would be viable if one day significant oil discoveries are made ... in Block B, and if these could be tied in with future finds in Kenya's northern Lake Turkana blocks," said analyst Browne.

"However, in the former Total has been unable to recommence exploration due to insecurity, and in the latter Tullow Oil is only just about to begin drilling," he said.

The government also hopes for big oil discoveries in the Central and Eastern Equatoria states, but based on the little mapping that has been done in the remote area, there is much uncertainty, said Wilkins from Global Witness.

"All bets are on Total," said Kathelijne Schenkel from the European Coalition on Oil in Sudan. "Only with substantial new finds will (a new pipeline) be worthwhile."

Analysts say repeated statements by southern officials about a new pipeline may be a bargaining tactic as Juba wrangles with Khartoum over the fee to use the northern pipeline to Port Sudan on the Red Sea.

The African Union has been trying to reach a deal, but talks stalled after Khartoum demanded $32 a barrel, which officials in Juba considered launching economic war. The fee is about a third of the South's export prices, around $90 in August.

Southern officials also hope for road projects to Kenya to reduce its dependency on the North for passage of its imports, which come mostly via the Nile.

A closure of the joint border by the north for several months has led to a scarcity of food and fuel, driving up inflation to 57 percent in August.

Diplomats say China, the main buyer of Sudanese oil and trading partner with both sides, could help broker an agreement.

China sent its foreign minister in August to north and south to expand ties as it tries to end tensions and remove the need for a Kenya pipeline after having funded the Red Sea pipeline.

"China is the one who could settle the dispute between north and south. They built much of the Sudanese oil industry to secure oil supplies," a diplomat said.

"Most of the loans granted by China have not been paid back, so they are in a very strong position," she said. (additional reporting by Ulf Laessing in Khartoum, editing by Jane Baird

[Kulang]

Originally Posted by Samanii

With all due respect to my Southern Brothers(Brother?), you really put too much faith into your government and its media. I do wish you well and if a pipeline to Kenya is what you want, that is your business. But try and recall the statements made by the government especially Dr. Machar in the beginning of the conflict that a pipeline would be built in 6-8 months. Its been 6 months and nothing. Several Independent organisations have already spoke about the high cost and difficultly building the pipeline due to many factors including geography, insecurity and the cost of running it. As you know it is uphill from South Sudan to Kenya and Djibouti. It is downstream to Sudan and port Sudan. So its not impossible, but ridiculous. Many have termed it the ‘pipeline dream’!!

Second point I would like to make on you video clip, again with all due respect to South Sudan television and its viewers integrity. But that white man shown with Dr. Machar does not look like Japanese Mr. Youchiro Kawasaki.

Like I said, all the best, no hard feelings and keep dreaming.

Oh, Another hater. Who's next? Stand in line.

[Kulang]

Originally Posted by bh2010

This is really good news and I'm crossing my fingers that Toyota goes through with it....But why are we planning two pipelines (Djibouti & lamu)? isn't one enough or has the current crisis with N. Sudan scared us so much that we can't trust any one country enough? I don't think we can afford two, that money could be spent better.

Great post Kulang

I agree, GoSS should focus on the Kenyan pipeline only.

[lady gaga]

im not actually i have a SS friends in Khartoum

[Kulang]

Originally Posted by lady gaga

im not actually i have a SS friends in Khartoum

Lol I know your're not a hater, but its for the haters who lurk in southern threads.

[lady gaga]

I just wanted to tell that not all the Sidanes are hater we lived together side by side for ages and those who says these might not hater I don't thinks Samaniii is a hater I think his just upset from what happened the few months ago heglig thing and stuff but it's over now! Wishing you all the best from a peacful Sudanese

[Samanii]

Im not hating ... i've given you professional opinion. Not mine.

Im simply stating facts ... reality check.

if you had some better argument than 'hater', i would love to have debated you in civilized manner. But clearly you dont have anything to say.

Ps lady-gaga, im not that upset about heglig. Im more upset about many (not all, like you said many are dear friends) South Sudanese who do hate, are racist and have a huge chip on their shoulder. I dont think many would call you brother.

Like i said .. good luck.