South Sudan & China Explore Alternative Oil Pipeline

Time to read
less than
1 minute
Read so far

South Sudan & China Explore Alternative Oil Pipeline

0 comments
Logo of the CNPC (© Shutterstock/Piotr Swat)
Logo of the CNPC (© Shutterstock/Piotr Swat)

South Sudan and China National Petroleum Corp (CNPC) are considering building a new pipeline to transport crude oil, as disruptions to the existing route have severely curtailed exports.

South Sudan President Salva Kiir proposed the new pipeline, which would pass through Djibouti and Ethiopia, during a visit to China. 

The pipeline aims to "enhance export capabilities" as the country ramps up production in Blocks 3 and 7, according to a statement from the presidency.

The two sides also discussed other oil-related matters, including reforms to the sector, the establishment of a refinery, and the development of distribution networks. 

CNPC pledged to ensure the smooth operation of infrastructure projects and continue exploring for new oil reserves.

CNPC holds a significant stake in Dar Petroleum Operating Co, the largest oil producer in South Sudan.

Oil production in South Sudan has been severely impacted by the ongoing conflict in neighboring Sudan, which has damaged the country's main export pipeline. 

In March, South Sudan declared a force majeure due to the inability to repair the pipeline. 

Before the pipeline was damaged, South Sudan produced around 150,000 barrels of oil daily. In July, exports of Dar Blend and Nile Blend crudes fell to a multi-year low of 52,000 barrels per day.