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Page added on April 29, 2012

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China offers South Sudan $8 billion in development funds

Production

China has offered South Sudan $8 billion in development funds for road, hydropower, infrastructure and agriculture projects, South Sudan’s information minister told Reuters on Saturday.

The loan came after South Sudan President Salva Kiir visited Beijing to secure support from China, which has major oil interests in both South Sudan and its northern neighbor Sudan.

A long-brewing conflict between Sudan and South Sudan over oil export fees, border demarcation and citizenship has halted nearly all oil production in the two countries, who sit atop one of Africa’s most significant oil resources.

South Sudan depends on oil for nearly 98 percent of its state revenue and the shutdown has puts its economy under pressure.

“China has offered financial funding to the value of $8 billion for major development projects,” Information Minister Barnaba Benjamin said.

The funds will be provided over the next two years and the projects will be conducted by Chinese companies, Benjamin said.

China is already the biggest investor in oilfields in South Sudan, through state-owned Chinese oil giants China National Petroleum Corp and Sinopec.

The Asian economic powerhouse has had to play a delicate balancing act with the two countries, since Beijing is also one of Sudanese President Omar Hassan al-Bashir’s major supporters.

When landlocked South Sudan seceded from Sudan last year, it took three-quarters of the region’s production, while the pipelines to export the oil are mostly in Sudan.

South Sudan is considering building two alternative pipelines, one to a port in Kenya and another through Ethiopia and Djibouti.

 - Reuters



7 Comments on "China offers South Sudan $8 billion in development funds"

  1. Kenz300 on Sun, 29th Apr 2012 3:58 pm 

    China is the driving force in oil prices. Their economy continues to grow at 8% a year using more oil every day. The worlds second largest economy and largest auto market is working to ensure its has the resources it needs for its economy to continue to grow.

  2. MrEnergyCzar on Mon, 30th Apr 2012 12:38 am 

    They keep making deals around the world. Relying on our military to take other’s resources has its limits…

    MrEnergyCzar

  3. BillT on Mon, 30th Apr 2012 1:01 am 

    Buy not loot…that is how China and Asia will take over this century. They use the dollars you spend at Walmart on Chinese junk and buy what they need from all over the world.

    The Empire takes those same Charmin dollars and buys weapons from the MIC and tries to police all of that same world while looting selected countries.

    Who will laugh last? Asia / China. Why? China will have turned their trillion dollar reserves into real things / raw materials. The Empire will have burned them up making the 1% richer and the Empire hated all over the world.

  4. dsula on Mon, 30th Apr 2012 12:19 pm 

    Can China rise forever? Or will it, too, cycle thru growth, peak, saturation, decline ? Such is life and it’s good. Imagine whoever sits at the top can sit there forever… yuck!

  5. BillT on Mon, 30th Apr 2012 2:46 pm 

    China only has to rise until the Us falls…then it can ease off and run the show. What does 12 carrier groups mean when there is no income to pay the troops and buy the bullets? When there is riots in the streets of the Us and cities are burning? When the 1/10% are afraid to come out of their gated communities and heads of government roll in the streets of DC? When 10 million storm the Pentagon?

  6. dsula on Mon, 30th Apr 2012 3:03 pm 

    So, then they should go ahead an run the show. I have no problem with that. And while doing so they get fat, lazy and stupid just like every other empire in the history. And it all will repeat.

    Not having to run the show frees up time and money for more important matters.

  7. BillT on Tue, 1st May 2012 2:07 am 

    dusula, there will not be any money or time for you to do anything but try to exist. That is what you and many others don’t seem to grasp. China can exist as a great power for centuries. It will not have to rule by force, just be.