The statement came during the visit of South Sudan’s
President Salva Kiir to China and the CNPC offices to discuss reforms
in South Sudan's oil sector, including improving oil production through
establishing a new refinery and building distribution networks.
Kiir also took part in the 1st South Sudan-Zhejiang
Economic, Investment, and Trade Forum, where he invited Chinese companies and
potential investors to explore some of the untapped investment opportunities in
South Sudan.
During talks with CNPC in China, an alternative pipeline
through Djibouti via Ethiopia was proposed, aiming to enhance export
capabilities of expanding extraction in Blocks 3 and 7.
CNPC holds 41% of Dar Petroleum Operating Company, the
biggest oil operator in South Sudan.
CNPC assured the South Sudanese president that the Chinese
state oil corporation would work closely with the local teams in the
development of infrastructure projects and continue oil exploration in the
country.
South Sudan’s oil exports have plunged since the
beginning of the year. The country is struggling to get any money in its budget
as its oil exports, on which it depends for 90% of state revenues, are stalled
by a ruptured pipeline in neighboring Sudan that is currently the only outlet
for South Sudan to sell its crude.
In March, Sudan declared force majeure on crude
oil exports from its landlocked neighbor South Sudan, following a major rupture
in the pipeline carrying crude from South Sudan to a port in Sudan in an area
with active military activity.
The latest conflict in Sudan erupted in April last
year, when the Rapid Support Forces (RSF), a paramilitary group, took up arms
against the Sudanese army in the capital Khartoum.
Many of South Sudan’s oilfields cannot send their oil north
via the pipeline in Sudan and revenues for South Sudan are plummeting.
Courtesy: oilprice.com
