South Sudan may soon supply Ethiopia with refined oil through the border.
According to the Ethiopian state Minister of Mines and Petroleum, his country spends about $3.4 billion annually from importing oil from the Middle East.
Koang Tut Lam told the recent Oil and Power conference in Juba that they stand to save 20% on the money it uses to import 4 million tons of refined products from the Arab nation.
He said Ethiopia plans to access the oil fields in South Sudan through Pagak and Adar, which he says are about 200 kilometres from the border.
“Owing to the proximity, we stand to save so much in expenditure,” said Tut.
South Sudan has the third-largest oil reserves in sub-Saharan Africa estimated at 3.5 billion barrels.
It currently produces 175,000 barrels per day but can produce as much as 500,000 barrels per day.
In 2017, the Ministry of Petroleum said more than 70 per cent of South Sudan oil sectors remains unexplored.
It called on investors to participate in direct negotiations with the government for available oil and gas acreages.
Minister Tut Lam called on South Sudan to stabilize the economy by implementing the revitalized peace agreement.
He noted that with peace, “Ethiopia will become a big market for South Sudan’s oil.”
Mr. Tut believes if the infrastructure is developed within the next 3 years, the movement of goods and people will increase between the two countries.
Get real time update about this post categories directly on your device, subscribe now.