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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
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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
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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
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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
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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
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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
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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.
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Mo
#7 Posted : Thursday, January 26, 2012 9:06:54 AM
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@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
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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...
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Mo
#9 Posted : Thursday, January 26, 2012 9:46:06 AM
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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
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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.

Impunity
#11 Posted : Thursday, January 26, 2012 9:56:49 AM
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sumuni wrote:
Guess GOSS its fed up with Sudan's incessant antics of closing the pipeline. How long before this project becomes operational? Kenya's Petrodollars


11 months if non of the corrupt Kenian contractors form part of the constructors!
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mlennyma
#12 Posted : Thursday, January 26, 2012 10:05:25 AM
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Its the last year for politicians to eat before the professionals come in,i assume they are very greedy.
"Don't let the fear of losing be greater than the excitement of winning."
limanika
#13 Posted : Thursday, January 26, 2012 11:17:46 AM
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What if they created a joint venture / company to own the pipeline - with 50% shareholding from each country. I would be very uncomfatable with my neighbour having 100% ownership of a water pipe passing through my plot
2012
#14 Posted : Thursday, January 26, 2012 11:22:45 AM
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limanika wrote:
What if they created a joint venture / company to own the pipeline - with 50% shareholding from each country. I would be very uncomfatable with my neighbour having 100% ownership of a water pipe passing through my plot


They own the gold hence they have options. This is a great deal for Kenya. We get to refine some hence own a piece and you know we need it. But I've heard SS crude is not the of best quality, doesn't come close to Middle East crude.

BBI will solve it
:)
limanika
#15 Posted : Thursday, January 26, 2012 12:12:49 PM
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Yes they have options but does that mean we cede some of our sovereignity. We need to know the full details of this agreement. Almost certain Kiraitu was armtwisted in some way
Cde Monomotapa
#16 Posted : Thursday, January 26, 2012 12:52:26 PM
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Joined: 1/13/2011
Posts: 5,964
limanika wrote:
Yes they have options but does that mean we cede some of our sovereignity. We need to know the full details of this agreement. Almost certain Kiraitu was armtwisted in some way

OMG...No wonder Africa is 'poor' we'd rather do bizness with some mid east fellaz who fancy throwing off our citizens over balconies or NATO countries that sponsor violent regime changes than our very own fellow Africans who we have a lot more in common. Nkt!!
Rahatupu
#17 Posted : Thursday, January 26, 2012 1:08:05 PM
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Location: matano manne
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!


Have you ever wondered why there is no road connecting KEnya to SS??

I want to look at the positive side of it and also remind everyone that Kenya has been commencing the LAPPSET Transport corridor since 2008. Not even the ground has been broken towards this end. All we do is talk, argue, litigate and basically go round and round in circles. In the meantime we are not the only interested party in the SS oil dollars. The GOSS has been seeing all this. Uganda has struck a deal with Tz to have its oil pass through Tanga instead of Mombasa or the illusory Lamu. Why? We remain with plans that never take off.DRC is following in the steps of Uganda.

Soon we'll be playing catch up. So I'd rather the deal which might awaken our attention to move with speed and urgency.
mlennyma
#18 Posted : Thursday, January 26, 2012 1:30:06 PM
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The oil in ss will flow to kenya when we identify how the rocks lay and strike our well...if wishes were horses.
"Don't let the fear of losing be greater than the excitement of winning."
mkeiy
#19 Posted : Friday, January 27, 2012 10:51:39 AM
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Joined: 1/27/2012
Posts: 851
Location: Nairobi
Why should Kenya waste money building pipeline for SS? What do we do with it[pipeline] once the oil dries up there or we have issues with SS? They should spend their money building it and pay rates. About sovereignty, what sovereignty are we losing here? Gazprom has been building gas pipelines throughout Europe. NKT!
jamplu
#20 Posted : Friday, January 27, 2012 12:02:31 PM
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Location: Nai
does it make any economic sense for kenya to start burdening its self with the costs of building a pipeline ? we can still benefit from it without having paid a penny. Tuwache hii mentality ya we have to own something to benefit from it!!
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