JUBA-South Sudan said Tuesday that it had a deal with the departed Malaysian company, PETRONAS to settle its debts until it finds a new partner to take their place.
These obligations include money required for operational activities, exploration, production, maintenance of oil facilities, and corporate taxes, among others.
Addressing reporters at a press conference held in Juba on Tuesday, Petroleum Minister Puot Kang Chol said settling of Malaysian company’s debt would stop the default operation from happening.
“Now, in regard to shares of Petronas, we have made an arrangement with partners as to how we shall be paying the cash code on behalf of Petronas until the government of Sudan names officially the entity that shall take over from Petronas,” Chol said.
“That arrangement, we have done it, and we believe that it will not affect default operation or default export in any manner. That is number one.”
In August 2024, Malaysian oil giant PETRONAS withdrew from South Sudan after 14 years, citing government obstruction of its asset sale.
This departure marks a significant blow to the country’s oil industry, already struggling with environmental concerns and economic decline.
On 27th August 2024, Petronas filed a lawsuit against the government of South Sudan, accusing it of illegally seizing its $1.25 billion local assets.
The company claims Juba blocked the sale of its operations and instead took control of its properties.
