(Ecofin Agency) - Ethiopia and Djibouti have awarded the contract for the construction of a joint oil pipeline of 550 km, valued at USD 1.55 billion, to developers Blackstone Group LP, a member of Black Rhino Group, and Mining, Oil & Gas Services.

Black Rhino Group revealed, on 2^nd October, the acquisition of this contract which was the object of an agreement between the two countries of the Horn of Africa. The term of the concession was set at 30 years and will start after the commercial activities.

It will be an oil pipeline 51 cm wide with a capacity of 240,000 barrels of fuel per day which will be used for the transportation of diesel, petrol and jet fuel from the Djibouti port to the centre of Ethiopia.

According to Brian Herlihy, CEO of Black Rhino, the group will raise at least USD 1 billion through loans, jointly with its partner MOGS, which is owned by Royal Bafokeng Holdings, based in Johannesurg.

The global financing should end in 2016 while the completion of the project, which has a 950,000 barrels warehousing facility in Damerjog, Djibouti is set for two years later, in 2018.