Malaysian oil giant Petronas has announced its decision to withdraw from South Sudan after 14 years, citing changes in the industry environment. The exit of Petronas Carigali Nile Ltd (PNCL) was confirmed in a recent statement, following the termination of a $1.25 billion acquisition deal by UK-based Savannah Energy for Petronas’ oil and gas assets in the country.
A senior Petronas official, who requested anonymity, cited several reasons for the withdrawal, including ongoing conflict in Sudan, challenges in ensuring staff safety, and rising operational costs. The official noted that the company has faced significant losses and poor returns on investment.
Petronas held substantial interests in three joint operating companies in South Sudan, covering 64 producing fields with an average gross output of 153,200 barrels of oil per day in 2021. The company’s partners in these ventures included China National Petroleum Corp, Sinopec, India’s Oil and Natural Gas Corporation Ltd, and South Sudan’s national oil company, Nilepet.
The collapse of the Savannah Energy deal, initially announced in December 2022, was due to the inability to finalize the transaction under the original terms.
Petronas stated that the withdrawal is part of its broader divestment efforts and long-term strategy in response to a shifting industry landscape and the accelerating energy transition. The company also emphasized its commitment to ensuring a smooth transition and protecting employee rights during the exit.
