France to break China's hold on South Sudan

[Armand2REP]

Background: China has invested over $20 billion in securing oil from Sudan. They built and operate Port Sudan which all oil flows. Sudan has blocked all oil shipments from the South demanding 10x transport cost. In desperation, the new government in Juba seeks to break this dependence on transport through the North. With Southern oil no longer flowing to Port Sudan, it is uneconomical to run and Chinese investment becomes worthless. France has seen the opportunity to move and Total has offered to reroute oil through its Uganda/Kenya pipeline.

http://sweetcrudereports.com/2011/12/08/total-plans-south-sudan-uganda-oil-pipeline/

If this deal goes through, China is cut out and France controls the oil.

 

[charlyondfi]

Dear Armand: are we going to do this again?

Where will France got that money from, and de-rout Euro debt crisis?

 

[amoy]

So TOTAL will dish out freebie to Juba?

South Sudan has talked to companies about building a pipeline directly to Kenya, but analysts say it would be difficult for the country, which still suffers civil strife, to raise the funds required or overcome other logistical challenges.

 

[Defcon 1]

just a hunch.....could it be possible that the division was sudan was helped by Europe, because now we see, it obviously benefits them....

 

[Ray]

The Church has a great influence in South Sudan.

Therefore, it will not be easy for China to purvey their influence.

 

[Bhartiya]

Why aren't we in Sudan yet??

 

[Bhadra]

Why aren't we in Sudan yet??

Because we are yet to come out of Parliament !!

 

[Bhartiya]

Because we are yet to come out of Parliament !!

no forign policies,no aggressive tactics, no censoredcensoredcensoredcensoreding plan, then how will be become global power?????

 

[Armand2REP]

Total is building a pipeline in Uganda to access 1.1 billion barrels, S. Sudan sits on 7 billion. It is no matter to extend the pipeline to access 7X what was originally planned. The cost will be extracted over time with oil shipments from Juba. It is a win-win for S. Sundan, Uganda, Kenya and France. It is lose-lose for Sudan and China. China sent its representatives to Sudan to stop the fees nonsense b/c they are losing production and if this continues, lose out entirely.

 

[amoy]

The cost will be extracted over time with oil shipments from Juba.

So, no matter win win or loss loss, at the end of the day Juba will cover the pipeline costs for Total or Uganda or Kenya?? As part of their feasibility study for the pipeline project, has S. Sudan or Total in good will assessed cost per barrel through the proposed pipe through U+K then via Kenyan exit port, in comparison to the established route to Port Sudan?

Will (N) Sudan be a sitting duck allowing the drain of their major revenue stream? (supposedly retaining the routing via North was part of the deal for secession).

And in Khartoum there's a refinery for the crude oil

Khartoum Refinery

The Khartoum Refinery is jointly invested in and constructed by CNPC and the Sudanese Ministry of Energy and Mining. CNPC has a 50% holding. The construction of the refinery commenced in May 1998 and it became operational in May 2000, with an annual processing capacity of 2.5 million tons. Its Phaseâ…¡ construction was completed in June 2006, increasing its crude processing capacity to 5 million tons. In 2006, a total of 4.16 million tons of crude was processed in this refinery. In 2007, a total of 4.74 million metric tons was processed at this Refinery.

 

[Armand2REP]

It is Khartoum that is charging 10X transit fees, it is themselves who are digging their own graves. They don't care so much since it was Chinese money that paid for those facilities to squander them to get what they see as theirs.

Of course Juba will pay over time, that is how all energy deals work.

 

[asianobserve]

It's time the West take a serious look at Africa before Chinese domination there becomes irreversible...

 

[amoy]

Now a problem can be there's no "West" as a monolith... there're France, Germany, Greece, Spain ... Ireland... individually each struggling their way to save their own ass

can't wait to see Euro being taken down

 

[sob]

China has propped the regime in N sudan for oil only. They have protected them in the SC, when serious charges with proof was presented over the gross human rights violations in S.Sudan. China could have used it's influence with the leaders to moderate their position but they never acted in a responsible way and continued to support them in international fora and also supply them with arms.

This does not behoove well for a nation aspiring to be a super power with global reach.

 

[Bhartiya]

China has propped the regime in N sudan for oil only. They have protected them in the SC, when serious charges with proof was presented over the gross human rights violations in S.Sudan. China could have used it's influence with the leaders to moderate their position but they never acted in a responsible way and continued to support them in international fora and also supply them with arms.

This does not behoove well for a nation aspiring to be a super power with global reach.

I dont think they should, they are there to do business, not to protect some idiotic values... I think we should start the same, reason and logic is more important than emotions.

 

[sob]

I dont think they should, they are there to do business, not to protect some idiotic values... I think we should start the same, reason and logic is more important than emotions.

this is not how you make friends in the international scene. This way you only make client states like the US and USSR. You have to just look the way Pakistan/US relations are panning out. This is a short terms approach good for 10-15 years at the maximum and cost you more in the long term.