Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.



Black Rhino plans to build big South Sudan refinery

12.12.2013  | 

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.

Keywords:

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 Africa’s newest nation seeks to become self-sufficient in oil products.

Black Rhino signed a “framework agreement” in August with South Sudan’s government for the proposed 50,000 bpd facility, company President Dan O’Shea said. The refinery in the country’s 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,” O’Shea 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 Russia’s Safinat. Construction will begin by the end of 2013, Russian Ambassador Sergei Shishkin said November 27.

South Sudan seceded from neighboring Sudan in July 2011 and took three-quarters of the formerly united country’s oil output. A dispute between the two nations over export revenue halted South Sudanese production last year, cutting the country’s economy by half to $9.34 billion, according to World Bank data.



Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Dor D. Dor
12.12.2013

its very interested to hear that. good news for South Sudan

steven
12.12.2013

It is very harder for Black Rhino

Related articles

FEATURED EVENT



Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry

Poll

Should the US allow exports of crude oil? (At present, US companies can export refined products derived from crude but not the raw crude itself.)


70%

30%




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2014 Hydrocarbon Processing. © 2014 Gulf Publishing Company.