South Sudan has invested in a US$3bn pipeline that will allow the newly-independent nation to export oil through Kenya’s Lamu port and reduce its dependence on Sudan
South Sudan finance minister Kosti Manibe announced that, while the republic does not currently have the money, it does have sufficient reserves to see the completion of the 2,000km pipeline.
"We don't need to have the money right now, we have the reserves," explained Manibe, “South Sudan will definitely have equity in the pipeline.”
South Sudan gained independence in July 2011 and its oil resources make up 98 per cent of the country’s budget.
South Sudanese officials have claimed that construction of the pipeline, which will be capable of transporting up to one million bpd of crude oil, is expected to have begun by June 2013 and take two years to complete.
The news follows a recent agreement between Sudan and South Sudan, which saw South Sudan consent to paying its northern neighbour US$9.48 per barrel of oil, as well as US$3mn in compensation.
