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Kenya urged to mediate Sudan oil row

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A soldier stands next to the infrastructure of a field processing facility in Unity State, South Sudan. Photo/AFP

A soldier stands next to the infrastructure of a field processing facility in Unity State, South Sudan. Photo/AFP 

By LUCAS BARASA lbarassa@ke.nationmedia.com
Posted  Sunday, January 22  2012 at  10:31

Despite South Sudan’s oil wealth with production of 470,000 barrels per day, it 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 over how much the south should pay to use the infrastructure.

Sudanese authorities recently stopped two ships loaded with 650,000 barrels of South Sudanese oil from leaving the export terminal because they did not pay the port fees, according to Khartoum's foreign ministry.

Oil firms active in South Sudan include Chinese state-owned China National Oil Corp., or CNPC, and Sinopec, Malaysia's state-owned Petronas, and Oil and Natural Gas Corp of India, or ONGC.

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