Ethiopia to import cheaper refined oil from South Sudan

JUBA, Oct. 31 (Xinhua/GNA) – Ethiopia will
soon start importing cheaper refined oil from South Sudan to substitute the
more expensive product from the Middle East, an official has announced.

Koang Tutlam, Ethiopia’s state minister for
mines and petroleum, said the move will see Addis Ababa save 15 percent to 20
percent on the 3.4 billion U.S. dollars it uses to import close to 4 million
tons of refined products every year for its population of more than 100 million
inhabitants.

“We import almost all of our oil and
other refined products from the Middle East, but owing to the close proximity
of about 200 km between the oilfields of Pagak and Adar and the Ethiopian
border, we stand to save so much in expenditure,” Tutlam told journalists
in Juba during a two-day energy conference.

The meeting was organized by South Sudan’s
petroleum ministry in partnership with African Oil and Power, an organization
that brings together ministers and senior-level government officials and top
executives of private sector companies spanning the energy value chain to
explore ways of utilizing oil resources to achieve economic stability. 

Tutlam said his country currently exports
hydroelectric power to South Sudan and will soon start to export about 400MW to
Kenya in a bid to expand its market.

South Sudan has the third-largest oil
reserves in sub-Saharan Africa estimated at 3.5 billion barrels and much more
still remains unexplored.

He noted that if the revitalized peace
process that is anchored on championing stability and economic recovery comes
to fruition, Ethiopia will become a big market for South Sudan’s oil.

“I think all will be well after two to
three years after which the two countries can put up the infrastructure which
will benefit both nations,” he said.  

GNA