Malaysia's state-owned Petronas and its partners have signed a transition agreement with the government of the Republic of South Sudan that enables them to continue operating in upstream blocks in South Sudan previously awarded by the government of the Republic of the Sudan, the company said Saturday.
The agreement grants Petronas and its partners the rights to conduct petroleum operations in three contract areas: blocks 1, 2 and 4; blocks 3 and 7; and block 5A. The contract areas had previously been secured under exploration and production sharing agreements.
Petronas subsidiaries hold stakes of 30%, 40% and 67.87% respectively in the three contract areas. The company's partners are China National Petroleum Corporation, Oil and Natural Gas Corporation, China Petroleum & Chemical Corporation and Tri-Ocean Energy.
Petronas said it has been active in the petroleum industry in the Republic of the Sudan since long before the secession of the Republic of South Sudan in July 2011.
Apart from protecting Petronas' rights and investments in the existing contract areas, the transition agreement paves the way for an enhanced, mutually beneficial relationship between the joint venturers and the government of South Sudan, the company added.
