During a visit to China, South Sudan President Salva Kiir held discussions with CNPC chairman Dai Houliang, where the new pipeline through Djibouti and Ethiopia was proposed to “enhance export capabilities of expanding extraction in Blocks 3 and 7,” according to a statement from the presidency.

The two also talked about oil-sector reforms, setting up a refinery, as well as distribution networks, according to the statement. CNPC would “ensure smooth flow operations of infrastructure projects and the continuous exploration of new oil reserves,” it said.

CNPC holds a 41% stake in Dar Petroleum Operating Co, which has the biggest operations in South Sudan.

Oil production is almost at a standstill, after one of two export pipelines blew in a section in neighbouring Sudan, which is at war. In March, the nation declared a force majeure as the conflict means engineers can’t carry out repairs. 

Before the pipeline breakdown, South Sudan produced 150,000 barrels daily. Last month, exports of its Dar Blend and Nile Blend crudes was at 77,000 barrels per day, from July’s multi-year low of 52,000 barrels, according to tanker-tracking data compiled by Bloomberg. 

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