The Memorandum of Understanding (MoU) pointed out that the two countries will negotiate and agree on transit fees for the oil pipeline, which will be based on international practice. It also provided for installation of fibre optic connections between the two neighbouring countries.
The agreement came four days after South Sudan passed a resolution in cabinet to shut down the oil pipeline which passes through Sudan to the Sudan sea port. The cabinet also passed a resolution to seek an alternative oil pipeline to another neighbouring country.
The MoU signing ceremony was held in Juba and was attended by Kenyan Prime Minister Raila Odinga, and South Sudanese President Salva Kiir Mayardit and Vice President Dr Riek Machar Teny. Various ministers from both countries were also present.
The South Sudanese Minister for Petroleum and Mining Stephen Dhieu Dau and Kenyan Minister for Energy Kiraitu Murungi signed the MoU on behalf of their respective governments.Article continues below…
In a press statement after the signing ceremony, the two ministers explained that the MoU laid a foundation for economic co-operation between the republics of South Sudan and Kenya.
An excerpt from the MoU reads “The purpose of this MoU is to develop and expand a framework of co-operation and partnership between the Government of the Republic of South Sudan and the Government of the Republic of Kenya on the principles of equality, mutual benefit, mutual understanding, respect and trust.”
The two ministries will work out the details of the agreement on the pipeline and fibre optic installation, and begin the implementation of the two projects.