The announcement comes after the feasibility study by Toyota Tsusho reportedly concluded that a cross-border oil export pipeline appears economically viable, favouring Lamu as the final destination. However, low oil prices, a slowed exploration rate in Kenya and political barriers raise questions on how development of the region's oil finds can be made economically sound for the companies involved.
South Sudan's inclusion in a regional export system is likely to be suspended until conflict subsides.
Production of its higher quality Nile Blend oil from Unity State fields will remain shut for the foreseeable future.
The fixed per barrel rate to Sudan, including extra to compensate for the loss of fields after secession, will be renegotiated in 2016.
