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

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.