Chinese firm Shengli Oilfield Keer Engineering and Construction Company (Sokec) on Friday signed an agreement with South Sudan’s state-owned Nile Petroleum Corporation (Nilepet) to construct modern oil refinery and storage facilities in South Sudan.
President of Sokec Wu Song and Managing Director of Nilepet Muhammad Lino Benjamin signed a Memorandum of Understanding (MoU) which will see the Chinese firm immediately begin investing in South Sudan.
Moreover, Benjamin hailed Sokec for its contribution to the development of the youngest nation in Africa.
“With this MoU, we hope you will be able to translate it into agreements and projects that we will do together,” he said at the signing ceremony in Juba, the capital of South Sudan.
Wu said Sokec will embark on investment without hesitation, aiming to enhance production capabilities and operational efficiency.
South Sudan Oil Pipeline Plans
South Sudan reactivated plans to truck and build oil pipelines through Kenya, Djibouti, Ethiopia and Sudan.
Additionally, Landlocked South Sudan still exports its crude oil to the international market through Port Sudan.
The young nation initially planned to construct an alternative oil pipeline but currently, the only pipelines taking oil to market pass through Sudan. Earlier reports indicated that an arm of the Toyota group had started a feasibility study into a pipeline through Kenya, although some analysts say the pipeline is not economically viable unless more crude reserves are discovered.
Similar Projects to South Sudan Oil Refinery
Moreover, South Sudan and neighboring Ethiopia also agreed to strengthen border security and boost trade through the construction of a new oil pipeline, officials announced on July 7, 2024.
The agreement follows discussions between governors and administrators from both countries on July 6th. The talks, described as “cordial and honest” by officials, focused on building consensus on shared interests through infrastructure development.
“The meeting represents an opportunity to strengthen bilateral relations, enhance border security, and foster economic cooperation,” said David Nyang, Minister of Cabinet Affairs in Upper Nile state.
A key outcome is a joint commitment to develop alternate oil transportation infrastructure. This includes mobilizing resources to build a highway connecting South Sudan’s Upper Nile state to Ethiopia’s Gambella region, with a route reaching the port of Djibouti. Enhanced security measures will be implemented along the route to facilitate trade and movement.
This initiative follows a June 24th decision by South Sudan’s parliament to allocate $778 million for the construction of a highway linking the two countries.
Roads to Improve Border Trade
“The existence of roads and improved security will significantly enhance border trade,” Nyang added. He highlighted existing challenges, such as human trafficking and livestock smuggling due to weak border management.
Lastly, South Sudan’s Deputy Minister of Foreign Affairs and International Cooperation, Semaya K. Kumba, described the agreement as a milestone, promoting cooperation and understanding. He emphasized the government’s commitment to implementing the agreement, building on the longstanding relationship between the two nations.
“This project represents a chance to consolidate peace and stability in the region through economic cooperation,” Kumba concluded.
Also read: South Sudan’s Cabinet Approves US$150 Million Juba Solar Project
Construction of the Multimillion 220-Kilometer Ethiopia-South Sudan Cross-border Road Takes Shape
