Petronas pulls out of South Sudan after Savannah Energy terminates RM5.6b deal
Petronas had already announced in December 2022 its intention to sell its entire South Sudan portfolio, which includes interests in 64 producing fields dating back to 1999. — Reuters pic
Thursday, 08 Aug 2024 10:53 AM MYT
KUALA LUMPUR, Aug 8 — Petronas is withdrawing its operations from South Sudan.
The decision comes after two years of divestment initiatives, according to a report in The Edge today, aligning with the long-term investment strategy of Malaysia’s national oil-and-gas giant amid a shifting industry landscape and an accelerated energy transition.
Petronas had planned to sell its entire South Sudan oil and gas business to British energy firm Savannah Energy PLC for up to US$1.25 billion (RM5.6 billion).
However, the deal fell through as both parties failed to reach an agreement.
Savannah Energy remains in discussions with other stakeholders for a potential alternative transaction to acquire Petronas’ assets, according to a statement from Savannah.
The Edge added that this exit ends Petronas’ more than 20-year presence in South Sudan, a nation plagued by persistent crises and a brutal civil war that has claimed over 14,000 lives, as per United Nation estimates.
The company also faced challenges from South Sudan’s 2011 secession from Sudan after decades of conflict.
Petronas had already announced in December 2022 its intention to sell its entire South Sudan portfolio, which includes interests in 64 producing fields dating back to 1999.
The failed sale would have seen Savannah acquire Petronas’ stakes in multiple joint operating companies across several blocks in South Sudan.
Thursday, 08 Aug 2024 10:53 AM MYT
KUALA LUMPUR, Aug 8 — Petronas is withdrawing its operations from South Sudan.
The decision comes after two years of divestment initiatives, according to a report in The Edge today, aligning with the long-term investment strategy of Malaysia’s national oil-and-gas giant amid a shifting industry landscape and an accelerated energy transition.
Petronas had planned to sell its entire South Sudan oil and gas business to British energy firm Savannah Energy PLC for up to US$1.25 billion (RM5.6 billion).
However, the deal fell through as both parties failed to reach an agreement.
Savannah Energy remains in discussions with other stakeholders for a potential alternative transaction to acquire Petronas’ assets, according to a statement from Savannah.
The Edge added that this exit ends Petronas’ more than 20-year presence in South Sudan, a nation plagued by persistent crises and a brutal civil war that has claimed over 14,000 lives, as per United Nation estimates.
The company also faced challenges from South Sudan’s 2011 secession from Sudan after decades of conflict.
Petronas had already announced in December 2022 its intention to sell its entire South Sudan portfolio, which includes interests in 64 producing fields dating back to 1999.
The failed sale would have seen Savannah acquire Petronas’ stakes in multiple joint operating companies across several blocks in South Sudan.
The Petronas O&G investment in Southern Sudan operations had been seen right from the start as a High Risk operation that had a high probability of an unfortunate ending.
ReplyDeleteAnd so it has come to pass.