Petronas sues South Sudan over asset sale ban, asset seizure
Date
8/27/2024 5:59:50 AM
(MENAFN) A subsidiary of Malaysia's state-owned energy company Petronas has initiated legal action against South Sudan, alleging that the government has obstructed the sale of USD1.25 billion worth of local assets and unlawfully seized control of the company's operations in the country. The lawsuit was filed by Petronas International with the World Bank's International Centre for Settlement of Investment Disputes on August 23.
Earlier this month, South Sudan's state-run Nile Petroleum Company took control of a Petronas oilfield and other assets belonging to the Malaysian firm. Nile Petroleum has announced plans to seek international partners to assist with operations and boost production. Petronas, which had been operating in South Sudan for nearly thirty years, had previously declared its intention to exit the country on August 8.
As of now, neither Petronas nor officials from South Sudan's oil ministry have responded to requests for comments. The legal dispute highlights ongoing tensions and challenges in the energy sector, particularly in regions with complex political and economic dynamics.
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