South Sudan and China National Petroleum Corporation (CNPC) are negotiating the construction of a new oil pipeline through Ethiopia to Djibouti, aimed at enhancing South Sudan’s export capacity.
This development follows South Sudanese President Salva Kiir’s visit to China, where he met with CNPC officials to discuss reforms in South Sudan’s oil sector.
These reforms include improving oil production by establishing a new refinery and expanding distribution networks.
During his visit, President Kiir also participated in the 1st South Sudan-Zhejiang Economic, Investment, and Trade Forum, inviting Chinese companies and investors to explore investment opportunities in South Sudan.
In discussions with CNPC, an alternative pipeline route through Djibouti via Ethiopia was proposed to boost the export capabilities of expanding extraction in Blocks 3 and 7. CNPC, which holds a 41% stake in Dar Petroleum Operating Company, South Sudan’s largest oil operator, committed to collaborating with local teams on infrastructure development and continued oil exploration in the country.
South Sudan’s oil exports have significantly declined this year due to a ruptured pipeline in Sudan, which is the sole export route for South Sudan’s crude oil.
The disruption began in March when Sudan declared force majeure on crude oil exports from South Sudan following a major pipeline rupture in an area affected by military conflict.
The conflict in Sudan, which began in April last year, has further exacerbated the situation. The ongoing violence between the Rapid Support Forces (RSF) and the Sudanese army in Khartoum has hindered the transportation of oil from South Sudan, leading to a sharp decline in the country’s revenue.
