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Africa Horn
South Sudan to refine oil for domestic consumption
2012-12-02
[The East African.Co.KE] As South Sudan continues negotiations with Sudan regarding the resumption of oil production and transit, the South Sudanese government says that it is developing its own industry and will start producing fuel for domestic consumption within the next eight months in order to avoid continued reliance on its neighbour.

South Sudan's Petroleum and Mining Minister Stephen Dhieu Dau said that as oil was due to start flowing again, one of the government's priorities was to establish the nation's infrastructure in order to process the commodity itself.

"Our aim is to ensure that some of the oil can be processed in the country to meet domestic needs and end the frequent shortages of diesel and petrol in our country," Mr Dau said.

South Sudan shut down production of oil in January after a dispute with neighbouring Sudan over oil transit fees.

Both countries agreed to resume oil production and trade on September 27 after former South African President Thabo Mbeki
...former president of South Africa, succeeding Nelson Mandela. He now pops up periodically as a mediator when something catches fire in Africa...
led the African Union
...a union consisting of 53 African states, most run by dictators of one flavor or another. The only all-African state not in the AU is Morocco. Established in 2002, the AU is the successor to the Organisation of African Unity (OAU), which was even less successful...
's mediation efforts in attempting to defuse a range of disagreements that almost led to full-blown war in April.

Oil sales contributed 98 per cent of South Sudan's revenue. But despite taking with it 75 per cent of Sudan's oil when it gained Independence from the rest of the country in 2011, South Sudan currently relies on Sudanese refineries and pipelines to process and transport its oil to the international market.

South Sudan's President Salva Kiir said last Monday at a meeting of state governors that oil production had not resumed this month as originally expected because of demands by Sudan that the country disarm the rebel Sudan People's Liberation Movement North.
Posted by:Fred

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