UAE investor takes South Sudan to arbitration over oil deal
Aquilon FZCO seeks completion of a March 2025 agreement or compensation for over $300 million in potential losses.
A United Arab Emirates investor, Aquilon FZCO, has initiated international arbitration against South Sudan and its state-owned Nile Petroleum Corporation (Nilepet). The dispute centers on a March 2025 agreement for the transfer of oil production assets previously held by Malaysia's Petronas, which Aquilon claims has not been finalized.
Aquilon states it has already paid 50 million US dollars for the deal and faces potential losses exceeding 300 million dollars if the agreement is not honored. The International Centre for Settlement of Investment Disputes registered the case on October 16, 2026, while Mauritius' Supreme Court issued a temporary injunction on October 29, 2026, preventing Nilepet from selling the disputed assets until February 5, 2027.
This arbitration adds to South Sudan's legal and financial challenges in its oil sector, following a separate case initiated by Petronas after a reported 1.25-billion-dollar deal collapse in 2024. Separately, South Sudan reached a preliminary agreement with Russia on October 29 for the transfer of former Petronas shares in DPOC and GPOC to Zarubezhneft.
Why it mattersSouth Sudan's government and Nilepet face international arbitration and asset sale restrictions impacting foreign investment in its oil sector.