PetroTrans negotiates with South Sudan on pipeline construction via Ethiopia

Posted on January 31, 2012


Saturday, 28 January 2012 07:17
The Hong Kong based Chinese company, PetroTrans, is negotiating with the Government of South Sudan on the construction of an oil pipeline from South Sudan oilfields to the Port of Djibouti. Reliable sources told The Reporter that PetroTrans has submitted a proposal to the South Sudanese government on the pipeline construction that stretches from Gambella to Djibouti. The Chinese company is expected to come up with a loan from the Chinese state banks. However, the distance and cost of the pipeline construction is not yet determined. The project needs the approval of the Ethiopian government. The pipeline will enable South Sudan to have an alternative pipeline to export its crude oil to the international market.

Last week South Sudan government officials announced that they would halt oil production within two weeks. South Sudan accused the north of stealing its oil export. Sudan says the south owes it more than 750 million dollars transit fees, adding that it would not keep on exporting the South’s oil unless agreement is reached on payment of arrears.

In Juba, an official last week said that South Sudan will continue to look for an alternative pipeline to export its oil. “We do not see a future in the oil infrastructure of the north. Our oil must have access to international markets. We should not be punished because we decided to secede,” Stephen Dhieu Dau, the South Sudanese oil minister told Reuters.

According to South Sudanese government officials, the new country is considering two alternative routes to construct alternative pipelines to the port of Djibouti via Ethiopia and to the Kenyan port of Lamu through southern Ethiopia.

PetroTrans which is negotiating with South Sudan is the company that took over all the oil exploration concessions held by the Malaysian company, Petronas, in Ethiopia in the Ogaden basin. PteroTrans signed an agreement with the Ethiopian Ministry of Mines that would enable it to develop the Calub and Hilala gas fields in the Ogaden basin. Petro Trans has good reputations in Sudan, Chad and Nigeria. Petro Trans Company Ltd. Was established in 1997, founded by a Chinese investor, John Chin. Petro Trans has been mainly involved in the oil and gas development industry, as well as oil and gas financing and leasing.

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