South Sudan, Russia agree on preliminary transfer of Petronas oil shares to Zarubezhneft

South Sudan has reached a preliminary agreement with Russia for the transfer of former Petronas shares in two major oil operating consortiums, Dar Petroleum Operating Company (DPOC) and Greater Pioneer Operating Company (GPOC), to Russian state-owned oil company Zarubezhneft. According to the Office of the President, the agreement is contained in a Memorandum of Understanding and a Letter of Acceptance. Both documents were signed at Russia’s Ministry of Energy on October 29, in the presence of senior officials and ministers from the two countries. The agreement marks an important step towards strengthening South Sudan’s oil partnership with Russia. The meeting was attended by South Sudan’s Minister of Petroleum, Hon. Awow Daniel Chuang, officials from the Ministry of Petroleum, representatives of Nile Petroleum Corporation (NilePet), and Russian Energy Minister Hon. Sergey Tsivilev.

The discussions took place in Moscow on the sidelines of the third Russia-Africa Summit, which South Sudan is attending from October 26 to 31. Zarubezhneft is a Russian state-owned oil and gas company with more than 50 years of international experience. The company specializes in developing oil and gas fields, particularly those that are difficult to operate, and introducing technologies that help increase oil production. In a statement, NilePet described Zarubezhneft as a suitable partner for South Sudan’s oil industry. The corporation said the Russian company has the experience needed to increase oil production, improve infrastructure, protect the environment and provide technical skills to South Sudanese workers. In December 2022, PETRONAS agreed to sell its South Sudan oil assets to British company Savannah Energy in a deal reportedly valued at approximately 1. 25 billion US dollars.…