South Sudan agrees to transfer Petronas oil shares to Russia
Zarubezhneft will take over stakes in DPOC and GPOC following Petronas' withdrawal.
South Sudan has agreed in principle to transfer former Malaysian oil company Petronas' shares in two oil consortiums to Russia's state-owned Zarubezhneft. The preliminary agreement was formalized through a Memorandum of Understanding and a Letter of Acceptance signed in Moscow on October 29. This move follows Petronas' official withdrawal from South Sudan's oil industry on August 7, 2024, after a previous sale attempt to Savannah Energy failed.
The shares are in the Dar Petroleum Operating Company (DPOC) and Greater Pioneer Operating Company (GPOC). South Sudan's Minister of Petroleum, Awow Daniel Chuang, and Russian Energy Minister Sergey Tsivilev were present at the signing. Nile Petroleum Corporation (NilePet) described Zarubezhneft as a suitable partner with experience in increasing production and improving infrastructure.
The transfer, discussed on the sidelines of the third Russia-Africa Summit, is expected to strengthen South Sudan's oil partnership with Russia. Zarubezhneft has over 50 years of international experience in developing oil and gas fields, particularly challenging ones. This agreement aims to create opportunities for greater economic cooperation and technical development in South Sudan's oil sector.
Why it mattersSouth Sudan's oil production and infrastructure development will be impacted by the transfer of shares to a new Russian operator.