Petronas closing shop in South Sudan

August 9, 2024, by Dragana Nikše

Petronas Carigali Nile Limited (PCNL), a subsidiary of Malaysia’s state-owned energy giant Petronas, is withdrawing from the Republic of South Sudan as part of its long-term investment plan.

According to the energy major, the decision was made following two years of divestment initiatives in line with its long-term investment strategy as the industry environment changes and the pace of energy transition picks up.

Apart from the decision to leave the central African country, the firm made two discoveries deemed significant in the first half of the year. On home turf, the Bekok Deep-1 discovery was made in May. Petronas said this was a milestone in Peninsular Malaysia’s energy sector over the past decade as well-testing results demonstrate a strong hydrocarbon flow rate.

Internationally, the Sloanea-2 appraisal well in Suriname’s Block 52 was drilled in June. Petronas believes this creates an opportunity to develop a standalone floating liquified natural gas (FLNG) project at the field in the future.

The firm is currently assessing the feasibility of an integrated development strategy for gas and oil extraction within the block, where other hydrocarbon discoveries were previously made in May 2024 and November 2023.

“We are extremely pleased with these breakthroughs, as they reaffirm PETRONAS’ commitment and expertise to providing exceptional value through substantial discoveries in Malaysia and internationally, driven by strategic and innovative approaches,” said Petronas’ Executive Vice President and Chief Executive Officer of Upstream, Mohd Jukris Abdul Wahab.

“These milestones underscore PETRONAS’ ongoing initiatives to enhance our exploration endeavors in selected focus regions and strive for sustainable resource replenishment.”

The state-owned giant recently inked production sharing contracts (PSCs) with several oil and gas players for three clusters situated offshore Peninsular Malaysia as part of the first round of Malaysia Bid Round Plus (MBR+), including one with Singapore’s Jadestone Energy.