![Petronas in South Sudan. [Photo courtesy]](https://i0.wp.com/www.sudanspost.com/wp-content/uploads/2024/08/Petronas-South-Sudan.png?resize=1000%2C647&quality=80&ssl=1)
According to the International Centre for Settlement of Investment Disputes, Petronas International Corporation registered a case against South Sudan on August 23.
Petronas’ decision to sue comes after it announced plans to exit the South Sudan oil sector due to challenging market conditions. The company had been operating in South Sudan for 14 years.
Following Petronas’ announcement, South Sudan’s state-run Nile Petroleum took control of the company’s local oilfield and assets.
The government said it would seek international partners to sustain operations and increase output.
The former Minister of Presidential Affairs, Bangasi Joseph Bakosoro, said all assets and shares of Petronas would be transferred to Nilepet.
He emphasized that the government would notify Petronas in writing of its acceptance of the company’s withdrawal.
The Undersecretary in the Ministry of Petroleum, Dr. Chol Thon, confirmed that Nilepet would assume Petronas’ responsibilities and seek partnerships with other international companies.
He also clarified that the government’s engagement was primarily with Petronas Carigali Nile Company Limited (PCNL), rather than its parent company, Petronas International Limited.
Petronas Carigali Nile Limited holds interest in three joint operating companies (JOCs) in South Sudan: Block 3/7 (40%), Block 1/2/4 (30%), and Block 5A (67.9%).
These assets include interests in 64 producing fields and an average gross production of 153,200 barrels a day of oil.
Partners in the JOCs include China National Petroleum Corp, Sinopec, India’s Oil and Natural Gas Corporation Ltd, and Nilepet.
The news of Petronas’ withdrawal came on the same day British independent energy company Savannah Energy announced it was abandoning a $1.25 billion deal to purchase Petronas’ assets in South Sudan.
