South Sudan and Russia have signed a preliminary agreement paving the way for Russian state-owned oil company Zarubezhneft to acquire former Petronas shares in the country’s oil-producing joint ventures.
The agreement was reached on October 29 during a meeting between South Sudan’s Minister of Petroleum, Awow Daniel Chuang, and Russia’s Minister of Energy, Sergey Tsivilev, at the Russian Ministry of Energy in Moscow.
The Memorandum of Understanding and Letter of Acceptance provide for the proposed transfer of the shares in the Dar Petroleum Operating Company (DPOC) and Greater Pioneer Operating Company (GPOC) to Zarubezhneft.
According to Nile Petroleum Corporation (NilePet), the Russian company brings experience in developing mature oilfields, increasing crude production, infrastructure development and technology transfer.
The proposed partnership is expected to strengthen bilateral cooperation in the oil sector, attract investment and support efforts to improve South Sudan’s oil production.
The meeting took place on the sidelines of the third Russia–Africa Summit, which South Sudan is attending from October 26 to 31.
