By MADING NGOR
NEW YORK (Bloomberg) -- Black Rhino Group,
a New York-based infrastructure-development company, may build
a $3 billion refinery in South Sudan as
Africas newest nation seeks to become self-sufficient in
Black Rhino signed a framework agreement in
August with South Sudans government for the proposed
50,000 bpd facility, company President Dan OShea said.
The refinery in the countrys
northern Upper Nile state would take about three years to build
and cost $2 billion to $3 billion, he said.
The planned refinery is intended to fill
the gap to supply the local market in full, OShea
said in a December 9 phone interview from New York. A
significant amount of refined products could be
shipped to Ethiopia, in exchange for electricity that would
power the facility. A final accord will probably be signed in
the Q2 of 2014, he said.
South Sudan, which exports about 220,000 bpd from its
oilfields via pipelines across Sudan, is building refineries as
it seeks to save foreign exchange it now uses to buy diesel
from neighboring countries.
The country imports as much as 40 million liters of fuel a
month from Kenya, Paul Adong Deng, managing director of
state-owned Niel Petroleum Corp., said in an October 29
interview in the capital, Juba. About 80 % of imports are
diesel and 20 % gasoline.
Refineries are already planned in the oil-producing states
of Unity and Upper Nile. The first, a 5,000 bpd facility in
Bentiu, is a joint venture between Nile Petroleum and
Russias Safinat. Construction will begin by the end
of 2013, Russian Ambassador Sergei Shishkin said November
South Sudan seceded from neighboring Sudan in July 2011 and
took three-quarters of the formerly united countrys oil
output. A dispute between the two nations over export revenue
halted South Sudanese production last year, cutting the
countrys economy by half to $9.34 billion, according to
World Bank data.