PETRONAS Withdraws from Republic of South Sudan Operations

PETRONAS' subsidiary, PETRONAS Carigali Nile Limited (PCNL), has announced its decision to withdraw from operations in the Republic of South Sudan (RSS). This move follows a comprehensive two-year period of divestment activities, which aligns with PETRONAS’ long-term investment strategy amid evolving industry dynamics and an accelerated shift towards energy transition. The decision reflects a strategic realignment in response to the changing energy landscape and aims to optimize PETRONAS’ portfolio to better meet future energy demands and sustainability goals. The company’s exit from the RSS market is part of its broader effort to adapt and position itself for long-term growth and resilience.

PETRONAS Carigali Nile Limited (PCNL) is committed to collaborating with all relevant stakeholders to facilitate a smooth and amicable transition following its withdrawal from South Sudan. The company will prioritize the rights and welfare of its employees, adhering to applicable laws, existing petroleum agreements, and PETRONAS’ internal policies and procedures. This approach ensures that the transition process respects legal and contractual obligations while supporting employees through this period of change.

On December 12, 2022, Savannah announced that it had signed a sale and purchase agreement with PETRONAS International Corporation Limited to acquire PETRONAS’ entire oil and gas business in South Sudan. However, the completion of this proposed acquisition was contingent upon meeting several conditions precedent, including obtaining necessary in-country approvals. Despite extensive and collaborative efforts from both parties to fulfill these conditions, they were not met. As a result, the sale and purchase agreement has been terminated, and the acquisition will not proceed as initially planned.

PETRONAS Carigali Nile Limited's decision to exit South Sudan underscores a strategic realignment in response to the evolving energy landscape and the company’s commitment to sustainable investment practices. This move, following a period of divestment initiatives, aligns with PETRONAS’ long-term vision of adapting to industry changes and enhancing its portfolio's resilience. By ensuring a smooth transition and prioritizing stakeholder and employee interests, PCNL demonstrates a responsible approach to managing operational shifts while reinforcing its dedication to sustainable and strategic growth.

Savannah Energy PLC is a UK-based independent energy company with a strategic focus on high-impact energy projects in Africa. The company has positioned itself as a key player in the region's energy landscape, aiming to deliver projects that drive economic growth and development. With a portfolio of assets and operations across multiple African countries, Savannah Energy is committed to providing sustainable and reliable energy solutions to meet the growing energy demands of the continent.