South Sudan is dishing out shares of the Petronas Oil firm in Juba to the Chinese.
The development seems to have been inked by officials from Juba who were recently in Beijing.
In a move which reflects economic cooperation between Juba and Beijing, the South Sudanese government held high-level discussions in the Chinese capital, a session which was attended by Foreign Minister Mandy Simaya, Under-secretary of Petroleum Deng Lual, and the director of the National Petroleum Company, Ngor Ayouel.
The talks, which included a meeting with the president of the Chinese National Petroleum Corporation, Huo Jizong, focused on enhancing cooperation in the oil sector, including the security of facilities and personnel, as well as the restructuring of shares in Dar Petroleum following the withdrawal of Malaysia’s Petronas.
South Sudan proposed transferring the 30 percent share previously owned by Petronas to the Sino investors, raising the Chinese company’s ownership in the project to over 70 percent and counting.
This proposal excited the Chinese who did not hesitate to jump at the prospect.
China had previously requested greater administrative authority in managing the firm’s operations.
Additionally, the two sides discussed potential Chinese support for the reconstruction of South Sudan and the development of its infrastructure, as part of expanding the strategic partnership between the two countries.
The Sino-Sudan meeting marks a significant shift in bilateral relations, as Beijing strengthens its influence in the East African country’s oil sector, while Juba seeks to attract new investments to drive economic development.
In August 2024, the Malaysian firm Petronas confirmed that its subsidiary Petronas Carigali Nile Limited (PCNL) had withdrawn from its operations in South Sudan, saying the decision was made after a two-year period of divestment initiatives aligned with its long-term investment strategy amid the changing industry environment and accelerated energy transition.
By June 2025 Chol Deng Thon, Undersecretary at South Sudan’s Ministry of Petroleum, said the state-owned Nile Petroleum will now assume the responsibilities previously held by Petronas.