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South Sudan and Kenya sign oil pipeline deal
by Staff Writers
Juba (AFP) Jan 25, 2012

Africa access to oil already 'rationed': Ethiopian PM
Davos, Switzerland (AFP) Jan 25, 2012 - Africa is already being priced out of access to fossil fuel by rising oil costs and has no option but to turn to alternative energy, Ethiopia's Prime Minister Meles Zenawi said Wednesday.

Speaking at the World Economic Forum in Davos, the leader of sub-Saharan Africa's second most populous nation said the high cost of traditional energy could ultimately benefit the developing world by forcing the pace of change.

"Most Africans will be priced out of modern energy, therefore it is crucial (to have) acccess to biofuels, solar power," said Meles.

"I do not know how it looks in developed countries but in Africa we think fossil fuels already are being rationed... Maybe it's a blessing in disguise, forcing us to look for alternative supplies."

Meles said a new hydro-electric rail project in his Horn of African nation was the kind of idea that would prevail in future as sustainable development was the only viable model.

"In my view Africa has no option but to go through the green path to development," he added. "We have to adjust no matter what happens with the climate change negotiations."

Meles was speaking on the day Microsoft founder Bill Gates issued an annual survey which highlighted the impact of rising populations, with Ethopia facing a 73 percent jump in its population by 2050 to 147 million.

South Sudan signed an agreement with Kenya to build an oil pipeline to a Kenyan port, potentially freeing it from reliance on its northern neighbour Sudan, officials said Wednesday.

South Sudan became the world's newest state when it split from the north last year but while it has most of the oil, Khartoum controls the pipeline and has access to the sea, causing frequent rows between the former civil war foes.

A memorandum of understanding was signed by Kenya and South Sudan "for the construction of the new pipeline," said Elizabeth James Bol, South Sudan's deputy minister of petroleum and mining.

The agreement, inked in Juba late Tuesday, "will allow the development of an oil pipeline and fibre optic connections between the oil fields in South Sudan and the Kenyan port town of Lamu," an official Kenyan statement read.

The agreement Tuesday was witnessed by South Sudanese President Salva Kiir and Kenya's Prime Minister Raila Odinga.

"The pipeline will be developed through Kenyan territory and will be built and owned by South Sudan," a statement from Odinga's office read. "The two countries will negotiate and agree on transit fees for the oil pipeline."

A pipeline would free land-locked South Sudan on its dependence of exporting oil through its northern neighbour and former civil war enemy Sudan, which it split from last July after decades of bloody conflict.

However, the oil-rich but grossly underdeveloped country lacks the infrastructure to refine and export oil.

Crucial facilities including a pipeline and Red Sea export terminal remain in Sudan, leaving the two states arguing bitterly over how much the South should pay to use the infrastructure.

Bol said no date had been fixed for construction to begin but it "will start as soon as possible."

Juba ordered last week a complete shutdown of oil production despite it making up some 98 percent of its revenue, amid a deepening row with Khartoum over pipeline fees.

It accuses Khartoum of stealing $815 million of its crude and building a pipeline to illegally siphon off oil.

Khartoum admits to taking some South Sudanese oil destined for export as compensation until an agreement is reached, but the South has said this is theft.

Industry experts have said that building a pipeline could take three years or more and be extremely costly to complete.

China is developing Lamu port, in a huge infrastructure project that conversationists have warned risks spoiling one of the country's environmental and cultural jewels.

The pipeline would also pass through areas rife with rebel forces, with groups warning Juba and oil companies of "military confrontation" if the pipeline goes ahead without their permission.

The South Sudan Liberation Army and South Sudan Democratic Army, rebel forces that operate in the oil-producing states of Unity and Upper Nile, also warned in a joint statement that shutting oil production was "economic suicide."

Kiir and Sudan's President Omar al-Bashir are slated to meet Friday for talks in the Ethiopian capital, where teams from both sides continue dragging negotiations mediated by the African Union.

"We are now talking to Khartoum, we are at the table. (We are) leaving no stone unturned until we catch these thieves, we will make them behave," South Sudan delegation head Pagan Amum told reporters Wednesday.

"I am actually not even sure if Kiir will meet Bashir if he still maintains this thieving attitude and he continues this stealing... It's not that our patience is running out, it has already run out."

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Republican pipeline bill raise legal questions: US official
Washington (AFP) Jan 25, 2012 - A senior US official said a Republican bill to deny US President Barack Obama the right to decide on the construction of an oil pipeline from Canada raises "serious" legal questions.

Kerry Ann-Jones, who is charged with reviewing the pipeline issue for the State Department, also told a legislative panel that the proposed law "overrides foreign policy and national security considerations."

Last week Obama, a Democrat, rejected the proposed Keystone XL pipeline from Canada to Texas, saying he could not vouch for its safety by a deadline despite intense election-year pressure.

Republicans had given him 60 days to make a decision on whether to approve the $7 billion, 1,700-mile (2,700-kilometer) pipeline route through the Great Plains to Texas, forcing him to choose between environmentalists and industry.

The Obama administration said TransCanada Corporation could resubmit the Keystone XL project but that officials were not able to assess its plan by a February 21 deadline put into law by the Republican majority in Congress.

According to a new bill sponsored by Republican lawmaker Lee Terry, the authority to approve such projects would fall to the Federal Energy Regulatory Commission.

The FERC "shall, not later than 30 days after receipt of an application therefor, issue a permit" for the oil pipeline, which would be implemented in line with an environmental impact statement, according to the bill.

Under existing legislation, the president has the authority to decide on the pipeline following a recommendation from the State Department, which deals with cross-border issues.

Jones told a House of Representatives subcommittee on power and energy that the bill would not resolve concerns about energy security, foreign policy, economic effects as well as the impact on health, safety and the environment.

"It just imposes narrow time constraints and creates automatic mandates that prevent an informed decision," she said, according to her prepared testimony.

"The legislation raises serious questions about existing legal authorities," said Jones, assistant secretary of state for oceans and international environmental and scientific affairs.

The bill also "questions the continuing force of much of the federal and all of the state and local environmental and land use management authority over the pipeline," she said.

And it "overrides foreign policy and national security considerations implicated by a cross border permit, which are properly assessed by the State Department," Jones said.


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Republican pipeline bill raise legal questions: US official
Washington (AFP) Jan 25, 2012
A senior US official said a Republican bill to deny US President Barack Obama the right to decide on the construction of an oil pipeline from Canada raises "serious" legal questions. Kerry Ann-Jones, who is charged with reviewing the pipeline issue for the State Department, also told a legislative panel that the proposed law "overrides foreign policy and national security considerations." ... read more

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