The construction of South Sudan-Kenya oil pipeline will kick off after the intergovernmental deal is signed next month.
Oil Deputy Minister Elizabeth James Bol told CRN that Toyota Tsusho handed to minister’s office the feasibility study report.She said the ministry is waiting for the inking of the agreement between the governments of South Sudan and Kenya, a legal document that details the ownership of the pipeline and payment of transit fees.
The deputy minister added that the intergovernmental agreement will be signed next month either in South Sudan or Kenya, and the work of the pipeline starts right away.
Ms James said the intergovernmental agreement will also spell out the financing of the pipeline.
She added that the project will be paid through a public-private partnership involving the construction company, the governments of South Sudan and Kenya and private inventors.
Ms James pointed out the discovery of oil in Kenya will make some changes in the legal binding document.
The pipeline was meant to be owned solely by South Sudan but now there might be necessary to include a third party.