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Dubai company in $13bn oil-for-cash deal with South Sudan

The oil-for-cash deal with Dubai's HBK DOP represents twice South Sudan’s GDP, with 70% to be spent on infrastructure Reuters/Essam Al-Sudani
The oil-for-cash deal with Dubai's HBK DOP represents twice South Sudan’s GDP, with 70% to be spent on infrastructure

Dubai-based Hamad Bin Khalifa Department of Projects (HBK DOP) has signed a €12 billion ($12.9 billion) oil-for-cash deal with South Sudan, according to a media report.

The loan agreement was finalised between HBK DOP and South Sudan’s former finance minister Bak Barnaba Chol between December and February, Bloomberg reported, citing an unpublished report by a United Nations Security Council-appointed committee of investigators.

The report said the deal represents twice South Sudan’s GDP, with 70 percent to be spent on infrastructure.

The loan will allow the Dubai company to access oil at a discounted price for up to 20 years, with South Sudan reportedly receiving $10 less per barrel of oil than the global price.

HBK DOP was founded by Sheikh Hamad bin Khalifa Al Nahyan, a distant member of Abu Dhabi’s royal Al-Nahyan family, the report said. 

Chol, who was dismissed by President Salva Kiir in March due to deteriorating economic conditions, did not comment on the report, Bloomberg said. No comments were received from HBK DOP.

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