South Sudan has revealed that an oil pipeline to be constructed by the country for exporting crude oil to global markets through Djiboutis Red Sea port will be required to pass through Ethiopia
The government of Ethiopia signed a Memorandum of Understanding with South Sudan and Djibouti, for the construction of the pipeline.
Ethiopian state minister for finance and economic development, Abrahame Tekeste, South Sudanese deputy minister of petroleum and mining Elizabeth James Bol and Djibouti’s chairman of Ports and Free Zones Authority Aboubaker Omar Hadi agreed that South Sudan will export oil via Djibouti’s port after crossing Ethiopia.
American consultancy firm Fortune, which will be conducting a feasibility study, has hired 10 consultants from different countries to conduct the study, which will examine issues, including the suitability of the country’s roads, the cost of construction and the environmental impact of the pipeline.
The safety of Ethiopian historical sites along the route of the pipeline will also be considered.
Ethiopian ministry of finance and economic development’s legal department head, Wassihun Abate said, “If the pipeline is not installed with care, it will cause very serious harm to the environment.”
Abate added that Ethiopia will be paid per barrel for each one that passes through its land.
South Sudan has a similar agreement with Kenya, which it entered into on August 2012.
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