Malaysian national oil company Petronas has decided to pull out of South Sudan after 24 years of service to the country’s oil sector.
The Minister of Presidential Affairs made the announcement upon the arrival of a government delegation from Malaysia at Juba International Airport on Sunday.
Dr. Marial says he has led a delegation to the Petronas headquarters to understand the reason for their exit – after more than two decades of operation in the South Sudan oil fields.
Speaking to the state-owned television – SSBC on Sunday evening, the minister said he will brief the president and the cabinet on the outcome of their meeting and the company’s decision.
However, Marial did not disclose either the reason for the departure of Petronas or the outcome of the talks.
It is also not clear if the abrupt pull-out will have a significant impact on South Sudan’s oil export – which accounts for almost all the revenue generated by the country.
Petronas started investing in Block 5A oilfields of Unity State in 1996.
In 2003, it bought oil assets from Lundin Petroleum at 142.5 million dollars in Block 5A –
The UK oil giant Savanah Energy has announced plans to replace Petronas and acquire the oil and gas assets for a price of 1.25 billion US dollars.
According to media reports, Savanah is seeking to inherit Petronas assets in the country including a 30% share in Blocks 1, 2, and 3, a 40% share in Blocks 3 and 7, and a 67.9% share in Block 5A.
However, the transaction will only go ahead after the approval of the government of South Sudan and Savannah’s shareholders.