Ethiopia will start importing South Sudan oil at cheaper rate compared to the more expensive product from the Middle East.
According to Ethiopia’s Minister of Mine and Petroleum Koang Tutlam, 15-20 percent of the money usually spent on importing refined oil from the Middle East has been saved from importing same amount from South Sudan.
“We import almost all of our oil and other refined products from the Middle East, but owing to the proximity of about 200 kilometer between the oilfields of Pagak and Adar and the Ethiopian border, we stand to save so much,” said Mr Tutlam.
South Sudan has the third-largest oil reserves in sub-Saharan Africa estimated at 3.5 billion barrels and most of it unexplored.
Ethiopia exports hydroelectric power to South Sudan and is currently bargaining to supply 400 megawatt of power to Kenya.
Mr Tutlam is optimistic that if all goes as planned, Ethiopia will be a big market for South Sudan in the Oil business.
“I think all will be well after two to three years after which the two countries can put up infrastructure that will benefit both nations,” he said.