JUBA - South Sudan is considering building an oil pipeline through
Ethiopia and Djibouti, officials said on Thursday, weeks after the new
country shut down crude production in a row over export transit fees
South Sudan seceded from Sudan last year, but the two countries have
been unable to agree how much the Juba government should pay to
transport its oil output of about 350,000 barrels per day through Sudan
to a Red Sea port.
As talks floundered in December, Khartoum began taking a portion of
southern oil to make up for what it calls unpaid fees. Juba responded by
halting oil production last month and has started looking for
alternative routes to export its crude.
At the moment, the only pipelines taking southern oil to market pass
through Sudan. Analysts fear the dispute could spark conflict between
the two countries, both of whose economies depend on oil.