S Sudan pipeline ‘to cost $3bn’

Pipe dream: South Sudan president Salva Kiir

Thomas Kenneth/Government of South Sudan

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Eoin O'Cinneide

 10 August 2012 14:33 GMT

South Sudan’s proposed crude oil pipeline through Kenya to the Indian Ocean is set to cost around $3 billion, a country official has said.

The nascent African republic will, however, have to put up its oil as collateral against the cost of building the pipeline to export to world markets.

"The s000 km pipeline will cost approximately $3 billion dollars," Reuters quoted South Sudanese finance minister Kosti Manibe as saying on Friday.

"We don't need to have the money right now, we have the reserves. South Sudan will definitely have equity in the pipeline," he told a press conference in Kenya’s capital of Nairobi, according to Reuters.

Earlier this year South Sudan inked a deal with Kenya to built the pipeline to take…

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