News Article by AFROL posted on August 26, 2008 at 09:48:35: EST (-5 GMT)
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Kenya to import crude oil from Sudan Afrol News, 26 August - Kenyan government will resume a monthly import of 500,000 barrels of crude oil from neighbouring Sudan following an agreement signed between two countries on yesterday. The move to procure crude from Sudan comes at a time when oil and fuel prices are at a record high, officials have said. Kenya, east Africa's largest economy, which has been sourcing most of its crude requirements from Middle East under open tendering, will now get oil from Sudan following the signing of memorandum of understanding, said a statement from Sudanese embassy in Nairobi. Kenya will be the third neighbouring country to buy Sudanese oil. Sudanese deputy envoy Badralgin Abdalla said a Kenyan team was in Khartoum to discuss technical details of the agreement, indicating that neighbouring Ethiopia and Eritrea are two other countries enjoying a similar arrangement. Importation from Sudan will be done by state-owned National Oil in an arrangement whose details are yet to be worked out. Observers said although the corporation has 100 per cent government shareholding, the arrangement presents best opportunity for stabilising fuel and food prices in Kenya. Kenyan government has in the past invited open tendering for procurement of oil in the country, though the process has proven to be expensive as it cost government more than US $ 50 million for shipment. Sudan's oil operations in deposit-rich Abyei region have been marred by violence with the central government in Khartoum and southern Sudanese government both claiming the ownership of the oil fields. North and south government had agreed to joint administration for the disputed oil-producing Abyei region in August where clashes in May have threatened to derail a 2005 peace deal. The clashes killed scores and displaced some 50,000 from their homes. North and south are still discussing who will make up an interim administration for Abyei but agreed on international arbitration to settle the dispute over who controls the oil-rich district. In 2011, Abyei is to hold a referendum on whether to retain its special administrative status in the north or join the south, which could decide in a separate referendum to secede from the north.
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