Ethiopia plans to import oil and its derivatives from South Sudan over the next two years

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[Juba, South Sudan, TCT, By Francis Mading] Ethiopia’s state minister for Petroleum, Koang Tut Lam, said his country could save between 15-20% of the $3.4 billion used to import up to 4 million tons of refined oil from the Middle East yearly.

[Juba, South Sudan, TCT, By Francis Mading] Ethiopia’s state minister for Petroleum, Koang Tut Lam, said his country could save between 15-20% of the $3.4 billion used to import up to 4 million tons of refined oil from the Middle East yearly.

Speaking to the reporters at a press conference on the sidelines of the 2019 oil and power conference in Juba, Lam said his country's participation was to support the economy of South Sudan. He also explained that his country could contribute in several areas, including the importation of oil from South Sudan instead of buying it from the Middle East countries, which is costly.

“We can save between 10-15% of the $ 3.4 billion used to import up to 4 million tons of refined oil from the Middle East annually" He affirmed. 

"We import all our oil and other refined products from the Middle East, but because of their proximity to about 200 kilometers between the oil fields in Fagak, Adar and the Ethiopian border, we are saving a lot," said Tut Lam.

He added that there are ongoing negotiations between the two countries to establish oil refineries in the border areas in the future to facilitate the import of oil from South Sudan, and other oil derivatives used in the construction of roads as well.

"this process can take around two to three years" Lam said. 

South Sudan became the smallest country in the world after its secession from Sudan in 2011. It has one of the largest crude reserves in sub-Saharan Africa, where only a third has been explored.

Separately, Tot Lam said Ethiopia, which is currently exporting hydropower to South Sudan soon, also plans to start exporting an estimated 400 megawatts of power to Kenya in order to expand its market.

The third oil and gas conference, held in partnership with Africa Oil and Power, focused on finance, oilfield technology and community development, was successfully concluded on Wednesday in Juba.

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