[ad_1]
August 9, 2024 (Juba) – Malaysian oil company Petronas has announced its exit from South Sudan after 14 years, citing a change in the industry environment. Petronas Carigali Nile Ltd (PNCL) confirmed the exit in a statement, while UK-based Savannah Energy terminated its plans to acquire Petronas’ oil and gas assets in the country for $1.25 billion.
A senior Petronas official, who spoke on condition of anonymity, attributed the evacuation to a variety of factors, including ongoing conflict in Sudan, an inability to ensure employee safety and rising operating costs. The official highlighted the company’s losses and lack of returns on investment.
Petronas holds significant interests in three joint-operating companies covering 64 producing fields, with an average daily output of 153,200 barrels of oil in 2021. Partners in these joint ventures include China National Petroleum Corporation, Sinopec, India’s Oil and Natural Gas Corporation and South Sudan’s national oil company Nilepet.
The Savannah Energy deal was originally announced in December 2022, but the deal fell through because it could not be completed on the terms originally envisioned.
Petronas said the divestment was in line with its ongoing divestment initiatives and long-term strategy amid a changing industry landscape and accelerating energy transition. The company stressed its commitment to ensuring a smooth transition and safeguarding employee rights.
[ad_2]
Source link
