The Energy and Mining ministry in the southern government and Petroliam Nasional Berhad (PETRONAS), a Malaysian-owned oil and gas company, on Friday signed a two-year memorandum of understanding (MoU) aimed at boosting mutual cooperation between the two parties.
The MoU, signed in Juba, South Sudan’s capital, outlines the overall principles of cooperation in the oil and gas sector between the government and the Malaysian oil giants, creating an avenue exploiting existing business opportunities in the two regions.
In addition, the agreement further creates a platform for the two parties to set up frameworks for sharing of experiences and expertise in the management of petroleum resources through capability building and other training programs.
Dato Wee Yiaw, PETONAS’s Executive vice president in charge of exploration and production business lauded the initiative, pledging his company’s commitment to fulfill its obligation of developing the oil and gas industry in the semi-autonomous region.
Garang Diing Akuong, South Sudan’s Minister for Energy and Mining remained optimistic that the two-year agreement will promote greater co-operation between the two parties, citing sharing of mutual interests as paramount.
“We believe this important document signed between the two parties will provide an avenue for strong cooperation between GOSS [Government of South Sudan] and PETRONAS,” the minister said amidst applause.
The southern government, the minister further revealed, plans to enter into agreements with all oil companies currently operating in the region prior to the country’s July 09 independence declaration.
In January 2008, Petronas, got permission from south Sudan’s government to begin oil exploration in block 5B, after agreeing to let Moldova’s Ascom Group keep part of the concession, an official said.
Following the signing of the Comprehensive Peace Agreement in 2005 peace deal, the Sudanese government Party mediated the conflicts of interest and in July last year agreed Petronas could keep its share in Block 5B provided it allowed Ascom, already working in the area, a share in the venture.
Block 5B, which lies partly in the swampy Jonglei state and covering more than 20,000 square km (7,723 sq miles), is operated by the consortium WNPOC (White Nile Petroleum Operating Company) led by Petronas and including India’s ONGC Videsh , Sudan’s state-owned Sudapet and Nilepet and Sweden’s Lundin Petroleum .
Founded on August 14, 1974, PETRONAS is wholly owned by the Malaysian government. Since its incorporation, the company has reportedly grown to be an integrated international oil and gas company with business interests in 35 countries.
In March 2005, according, the PETRONAS Group comprised 103 wholly owned subsidiaries, 19 partly owned outfits and 57 associated companies. The Malaysia oil and gas company was ranked among Fortune Global 500’s largest company in the world. It also ranked PETRONAS as the 13th most profitable company in the world and most profitable in Asia.
