Malaysia’s Petronas withdraws from South Sudan amid investment shift

MALAYSIAN state energy firm Petroliam Nasional (Petronas) said it will withdraw from South Sudan as it tailors its investment strategy to business conditions.

“The decision was made following a two-year period of divestment initiatives in alignment with Petronas’ long-term investment strategy amid the changing industry environment and accelerated energy transition,” the firm said in a statement late on Wednesday (Aug 7).

Subsidiary Petronas Carigali Nile will work with stakeholders to ensure an amicable transition, it said.

After the Petronas announcement, Britain’s Savannah Energy said it has pulled out of a US$1.25 billion purchase of Petronas’s oil and gas business in the East African nation. “It has not been possible to complete the proposed transaction on the envisioned terms,” Savannah said.

“Savannah remains in active discussions with the relevant parties around an alternative potential transaction in relation to an acquisition of the Petronas assets,” Savannah said in a statement. REUTERS