Petronas Signs Transition Agreement With South Sudan

KUALA LUMPUR, Jan 14 (Bernama) -- National petroleum company Petronas and its partners have signed a transition agreement with the government of South Sudan for the continued operations in the upstream blocks in the country. The operations was previously awarded by the government of the Republic of South Sudan. In a statement on Saturday, the national oil company said the agreement grants Petronas and its partners, the rights to conduct petroleum operations in Blocks 1, 2 and 4, Blocks 3 and 7 and Block 5A. These are their existing contract areas secured via the previous exploration and production sharing agreements. The agreement was signed on Friday in Juba, South Sudan. Apart from protecting the rights and investments of Petronas and its partners in the existing contract areas, the transition agreement also paves the way for enhanced, mutually-beneficial relationship between Petronas and its partners with South Sudan's government. Petronas' presence in South Sudan was through its interests in the Greater Nile Petroleum Operating Company Ltd (30 per cent), Pterosaur Operating Company (40 per cent) and the White Nile Petroleum Operating Company Ltd (67.87 per cent). These are the joint operating companies for the three contract areas. Petronas' partners are China National Petroleum Corporation, Oil and Natural Gas Corporation, China Petroleum and Chemical Corporation and Tri-Ocean Energy. Petronas had been actively involved in the development of the petroleum industry in Sudan, long before the secession of South Sudan in July last year. Its investments in these two countries form an important international asset portfolio for the Malaysian national oil corporation. Petronas said it is committed to the growth and development of the petroleum industry in South Sudan, as well as its efforts in human resource development via academic initiatives, technology-based skills training and professional capability building. -- BERNAMA Malaysia