Politics of Pipeline Ownership, Usage and Obligations in Oil and Gas Sector of South Sudan


Authors : Jacob Dut Chol Riak

Volume/Issue : Volume 9 - 2024, Issue 11 - November


Google Scholar : https://tinyurl.com/2tas3xw4

Scribd : https://tinyurl.com/34r2hr9n

DOI : https://doi.org/10.38124/ijisrt/IJISRT24NOV628

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.


Abstract : The study focuses on the politics of pipelines in South Sudan. It investigates the pipeline ownership, usage and obligations in oil and gas sector, particularly, in the context of South Sudan. The study defines pipeline, discusses the typologies of pipelines such as liquid petroleum pipelines that include crude oil, refined production and highly volatile liquid and natural gas pipelines such as transmission and distribution lines. While its notes the features of pipeline, its argues the pipeline transportation model that embraces push-back and traditional types. The study surveys various alternatives for ownership and usage of pipeline such as build your own pipeline, access to third party pipeline, hybrid and equity pipeline ownerships. While noting the importance of obligations and responsibilities on the pipeline in the midstream section of oil and gas sector, the study argues the key obligations of key parties in the pipeline in areas of financing, governance structure, transportation, shipment, maintenance of health, safe and clean environment. The study appreciates the existing of trans-boundary pipelines in South Sudan to Sudan such as Dar Petroleum Operating Company (DPOC)/Bashayer Pipeline Company (BAPCO), Greater Pioneer Operating Company (GPOC)/Greater Nile Oil Pipeline Company (GNOPC) and Sudd Petroleum Operating Company (SPOC) pipeline. The study notes the politics of ownership, usage and obligations of pipeline through cut- throat politics between South Sudan and Sudan and through non-technical negotiations of pipeline tariffs/fees by the Government of South Sudan. The outcome of this cut-throat politics is delay of the fixing of destroyed DPOC pipeline by Sudan Rapid Force (SRF) by the Government of Sudan. Although the study uses process-tracing, case study and literature review as its methodology, it describes and surveys the global understanding of piping as a very useful tool in midstream segment of oil and gas sector. The study concludes that ownership, usage and obligations of pipeline should be technically agreed upon by the countries pipelines pass through their territories, rather than being politically motivated. Both the Governments of Sudan and South Sudan should immediately review pipelines fees using percentage/sliding scale model. The study recommends further research on technical negotiations of pipeline host agreements and particularly, pipeline fees so that each country is not disadvantaged when prices of oil plummets and when pipelines are destroyed during the war.The study also recommends to the oil and gas pundits on pipelines to exhaustively study the pipelines components and technologies use so as to innovate the best pipeline components and technologies for crude oil or gas that should be embraced by the piping world.

Keywords : Politics, Pipeline, Ownership, usage, Obligation, Trans-Boundary, Negotiation, Oil, Gas.

References :

  1. Adebayo, A and Dada, S. (2008). An Evaluation of the Causes of Oil Pipelines Incidents in Oil and Gas Industries in Niger Delta Region of Nigeria. Journal of Engineering and Applied Sciences. Vol 3 (3): 279-281
  2. Chanda, S. (2013). Petroleum Pipelines. A Handbook for Onshore Oil and Gas Pipelines.Cambridge University Press
  3. Coburn, L.(1988). Eighty Years of US Petroleum Pipeline Regulations. The Journal of Transport History. Vol 9 (2): 149-169
  4. Dawotola, A and Gelder, V. (2009). Risk Assessment of Petroleum Pipelines in Europe. University of Brussels Press
  5. Geda, A and Kayizzi-Mugerwa, S. (2014). Sudan and South Sudan. Ensuring Mutual Viability through Macroeconomic Cooperation. Zambia Social Science Journal. Vol 3 (1): 46-57
  6. Guyer, J. (2002). Briefing: The Chad-Cameroon Petroleum and Pipeline Development Projects. Journal of African Affairs. Vol 10 (402): 109-115
  7. Hammerson, M. (2011). Cases, Materials and Commentary. Upstream Oil and Gas. Globe Law & Business
  8. Hidy, R. (1956). Some Implications of the Recent Literature on the History of the Petroleum Industry. A Review Article . Journal of Business History Review. Vol 30 (3): 329-346
  9. Kinya, P and Doesvenspeck, M. (2023). Governing Petro-(im) Mobilities: The Making of Right of Way for Uganda’s East African Crude Oil Pipeline. Journal of Mobilities. Vol 18 (6): 968-984
  10. Lewis, K. (1984). Oil and Gas Pipeline Fundamentals. Princeton University Press.
  11. Makholm, J. (2012).  The Political Economy of Pipelines. A Century of Comparative Institutional Development. University of Chicago Press.
  12. Riak, J. (2021). South Sudan State Formation: Failures, Shocks and Hopes. Africa World Book Press.

13. Riak, J. (2024). The Petroleum Industry of South Sudan: Institutions, Trends, Legal Regimes and Leaderships. Virtue Books Publishers-Nairob

The study focuses on the politics of pipelines in South Sudan. It investigates the pipeline ownership, usage and obligations in oil and gas sector, particularly, in the context of South Sudan. The study defines pipeline, discusses the typologies of pipelines such as liquid petroleum pipelines that include crude oil, refined production and highly volatile liquid and natural gas pipelines such as transmission and distribution lines. While its notes the features of pipeline, its argues the pipeline transportation model that embraces push-back and traditional types. The study surveys various alternatives for ownership and usage of pipeline such as build your own pipeline, access to third party pipeline, hybrid and equity pipeline ownerships. While noting the importance of obligations and responsibilities on the pipeline in the midstream section of oil and gas sector, the study argues the key obligations of key parties in the pipeline in areas of financing, governance structure, transportation, shipment, maintenance of health, safe and clean environment. The study appreciates the existing of trans-boundary pipelines in South Sudan to Sudan such as Dar Petroleum Operating Company (DPOC)/Bashayer Pipeline Company (BAPCO), Greater Pioneer Operating Company (GPOC)/Greater Nile Oil Pipeline Company (GNOPC) and Sudd Petroleum Operating Company (SPOC) pipeline. The study notes the politics of ownership, usage and obligations of pipeline through cut- throat politics between South Sudan and Sudan and through non-technical negotiations of pipeline tariffs/fees by the Government of South Sudan. The outcome of this cut-throat politics is delay of the fixing of destroyed DPOC pipeline by Sudan Rapid Force (SRF) by the Government of Sudan. Although the study uses process-tracing, case study and literature review as its methodology, it describes and surveys the global understanding of piping as a very useful tool in midstream segment of oil and gas sector. The study concludes that ownership, usage and obligations of pipeline should be technically agreed upon by the countries pipelines pass through their territories, rather than being politically motivated. Both the Governments of Sudan and South Sudan should immediately review pipelines fees using percentage/sliding scale model. The study recommends further research on technical negotiations of pipeline host agreements and particularly, pipeline fees so that each country is not disadvantaged when prices of oil plummets and when pipelines are destroyed during the war.The study also recommends to the oil and gas pundits on pipelines to exhaustively study the pipelines components and technologies use so as to innovate the best pipeline components and technologies for crude oil or gas that should be embraced by the piping world.

Keywords : Politics, Pipeline, Ownership, usage, Obligation, Trans-Boundary, Negotiation, Oil, Gas.

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