KUALA LUMPUR: National oil and gas company Petroliam Nasional Bhd (Petronas) says its withdrawal from South Sudan was decided after a thorough review "to fit its growth ambition".
"The decision was made after a careful and thorough review of Petronas' business portfolio to fit its growth ambition based on the rapidly changing energy transition landscape," Petronas told Business Times.
As a business entity, Petronas said the group regularly reviews its entire portfolio (including its upstream assets in South Sudan) to ensure that the company remains resilient in the evolving energy landscape.
"The portfolio rationalisation exercise for its assets in the Republic of South Sudan includes manpower optimisation as well," it said.
When asked on the number of affected employees, Petronas said all matters related to manpower will be handled responsibly.
"This will be handled in a responsible manner in accordance with the prevailing Republic of South Sudan's labour laws and requirements, and Petronas policy and procedures, being mindful of the rights of its employees," it added.
Petronas recenntly announced that its unit Petronas Carigali Nile Ltd (PNCL) had withdrawn from South Sudan after 14 years of operations.
PCNL's presence in South Sudan oil and gas industry was based on a joint operating company (JOC) model with interests in three JOCs which operate Block 3/7 (40 per cent), Block 1/2/4 (30 per cent) and Block 5A (67.9 per cent).
The news of the withdrawal came on the same day British independent energy company Savannah Energy said it was aborting an up to US$1.25 bilion deal, made in 2022, to buy Petronas' assets in South Sudan.
In the statement posted on its website, Savannah Energy said Petronas had served notice to unilaterally withdraw from its interests in the relevant exploration and production sharing agreements.
Savannah Energy said it remained in active discussions with the relevant parties around an alternative potential transaction in relation to an acquisition of the Petronas assets.
A further update on progress is expected to be made in early September.