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South Sudan signs deal with Kenya to build pipeline to lamu
limanika
#1 Posted : Wednesday, January 25, 2012 6:04:28 PM
Rank: Veteran

Joined: 9/21/2011
Posts: 2,032
I hear Tinga oversaw the signing on Kenya's behalf, and just wondering if in his usual hasty manner he read in between the lines - as the pipeline will be owned by S. Sudan. Fact is, crude oil will get depleted in south sudan in the next 10-15 yrs. S. Sudan will become net importer of oil through Kenya. Kenya could then be forced to buy the pipeline back at a huge price!
sumuni
#2 Posted : Wednesday, January 25, 2012 8:44:06 PM
Rank: Member

Joined: 6/24/2007
Posts: 111
Location: Afrique
Guess GOSS its fed up with Sudan's incessant antics of closing the pipeline. How long before this project becomes operational? Kenya's Petrodollars
It is a curious fact that of all the illusions that beset mankind, none is quite as curious as that tendency to suppose that we are mentally and morally superior to those who differ from us in opinion.
tony stark
#3 Posted : Thursday, January 26, 2012 5:34:35 AM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
But did you hear Kiraitu say that the pipeline will belong to GOSS and not in partnership with Gok. GoK will only help to speed up right of passage ala this is such a stupid ownership structure.
How can GOSS own the pipeline that lies on Kenyan land??
This kind of deals are very messed up and especially if it is being rushed, no vetting and especially with the goverment changing hands and greedy idiots like kiraitu being the ones signing such deals!
I hope this consultancy highlights the issues that pipeline will face passing through pseudo-independent counties!
slykat
#4 Posted : Thursday, January 26, 2012 5:59:00 AM
Rank: Member

Joined: 2/20/2007
Posts: 359
tony stark wrote:
But did you hear Kiraitu say that the pipeline will belong to GOSS and not in partnership with Gok. GoK will only help to speed up right of passage ala this is such a stupid ownership structure.
How can GOSS own the pipeline that lies on Kenyan land??
This kind of deals are very messed up and especially if it is being rushed, no vetting and especially with the goverment changing hands and greedy idiots like kiraitu being the ones signing such deals!
I hope this consultancy highlights the issues that pipeline will face passing through pseudo-independent counties!


Was wondering same thing too. Imagine like if Kenya Railways belonged to Ugandan, just how much would we make off them? Ama we will buy our oil at discounts?
Cde Monomotapa
#5 Posted : Thursday, January 26, 2012 8:30:37 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Tuwache ulafi saa zingine. We'll collect rents or rates from it. Also, why should we spend our own money to build infra for another country? We have our own infra devt. thingies to do.
seppuku
#6 Posted : Thursday, January 26, 2012 8:45:05 AM
Rank: Veteran

Joined: 5/11/2010
Posts: 918
limanika wrote:
I hear Tinga oversaw the signing on Kenya's behalf, and just wondering if in his usual hasty manner he read in between the lines - as the pipeline will be owned by S. Sudan. Fact is, crude oil will get depleted in south sudan in the next 10-15 yrs. S. Sudan will become net importer of oil through Kenya. Kenya could then be forced to buy the pipeline back at a huge price!


Is it really that bad? I think what is important is for us to get oil for less money than we do right now. That's what needs to be worked out and told to us so we can judge the quality of the deal. On the whole, it makes sense to me that we should import oil from our neighbors who have it rather than from far away places like Kuwait and wherever.
Learn first to treat your time as you would your money, then treat your money as you do your time.
Mo
#7 Posted : Thursday, January 26, 2012 9:06:54 AM
Rank: Member

Joined: 9/21/2007
Posts: 326
@seppuku, oil is ALWAYS sold at international prices regardless of you proximity to the source! therefore the pipeline does not in any way gurantee Kenyans cheaper oil, what it does though is it makes for better trade ties with the new republic through some transit fees. remember they own the pipe but they still pay some transit fee to gok.
Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story.
bkismat
#8 Posted : Thursday, January 26, 2012 9:12:09 AM
Rank: Elder

Joined: 10/23/2009
Posts: 2,375
Mo wrote:
@seppuku, oil is ALWAYS sold at international prices regardless of you proximity to the source! therefore the pipeline does not in any way gurantee Kenyans cheaper oil, what it does though is it makes for better trade ties with the new republic through some transit fees. remember they own the pipe but they still pay some transit fee to gok.

Don't make me laugh. So we get oil from middle east minus the cost of transportation?
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
Mo
#9 Posted : Thursday, January 26, 2012 9:46:06 AM
Rank: Member

Joined: 9/21/2007
Posts: 326
bkismat wrote:
Mo wrote:
@seppuku, oil is ALWAYS sold at international prices regardless of you proximity to the source! therefore the pipeline does not in any way gurantee Kenyans cheaper oil, what it does though is it makes for better trade ties with the new republic through some transit fees. remember they own the pipe but they still pay some transit fee to gok.

Don't make me laugh. So we get oil from middle east minus the cost of transportation?

CORRECT plus taxes of course.
Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story.
YesuWangu
#10 Posted : Thursday, January 26, 2012 9:52:02 AM
Rank: Elder

Joined: 8/11/2010
Posts: 1,588
limanika wrote:
I hear Tinga oversaw the signing on Kenya's behalf, and just wondering if in his usual hasty manner he read in between the lines - as the pipeline will be owned by S. Sudan. Fact is, crude oil will get depleted in south sudan in the next 10-15 yrs. S. Sudan will become net importer of oil through Kenya. Kenya could then be forced to buy the pipeline back at a huge price!



Politics in everything.

It is Kiraitu Murungi, the Monister of Energy who signed the agreement on behalf of the Government of Kenya.

You have the option of sabotaging the pipeline if it doesnt serve your political interests.

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