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Juba – Al-Wadi Newspaper
The Undersecretary of Petroleum, Eng. Dr. Chol Deng Abel, has officially signed an agreement transferring the shares and assets of Petronas to the state-owned Nile Petroleum Corporation (NILEPET), in a move seen as a significant shift in the management of the country’s oil sector.
This development follows the announcement by Petronas Carigali Nile Limited (PCNL) of its withdrawal from all operations in Africa, including South Sudan, in August 2024, after approximately 14 years of activity, in accordance with the exploration and production sharing agreement signed with the government.
Under the agreement, all assets and liabilities of Petronas in South Sudan will be transferred to NILEPET, which will take over operations in six oil blocks, aiming to ensure production continuity amid challenges faced by the exiting company, including high operating costs and pipeline infrastructure issues.
Prior to its withdrawal, Petronas held significant stakes in three key joint operating companies, including 40% in Block 3/7, 30% in Block 1/2/4, and 67.9% in Block 5A, operated by DPOC, GPOC, and SPOC respectively.
Observers view this step as an important milestone in strengthening state control over the oil sector, while NILEPET is expected to seek a qualified international partner to take over the transferred shares and ensure efficient continuation of operations.
