The first Sudanese contract to build pipelines for petroleum between Khartoum and Wad Madani, the capital of El Gezira state, was signed on Sunday.
The Sudanese Organisation for Oil and the Jiyad Pipes Co. agreed on building the 220 km-long line, which is 12 inches wide, at the cost of SDG155 million ($25 million). El Gezira is directly south of Khartoum state.
Sudan’s Oil Minister, Makawi Mohamed Awad, described the contract as “a very important one”. It is the first part of the entire Sudanese agreement – in terms of equipment manufacturing and implementation.
At the signing ceremony, Mohamed Awad pointed out that the line has a designed capacity of 1.3 million tons per year in its first phase. The minister stressed the refinery of the oil would support the economy, as well as the distribution of petroleum products to the US, once sanctions are lifted.