South Sudan’s Oil Sector Faces New Challenges

South Sudan has declined to renew Oranto Petroleum's oil license, signaling ongoing issues in the oil sector. The decision reflects unmet obligations by the company.
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South Sudan has declined to renew Oranto Petroleum’s Exploration and Production Sharing Agreement for Block B3, highlighting ongoing challenges in the country’s oil sector. The Ministry of Petroleum stated that Oranto did not meet key work program obligations.

“Oranto did not meet key work program obligations, including the completion of required seismic surveys and the drilling commitments stipulated in the agreement,” said South Sudan’s Ministry of Petroleum.

This decision follows a comprehensive review of Oranto’s performance under the EPSA over the six-year contractual period. The company also failed to fulfill its financial obligations to the Government of South Sudan.

Block B3 is now open for new applications from qualified international and regional oil and gas companies. This move comes as South Sudan continues to navigate its recovery from a prolonged civil war.

The United Nations Security Council recently extended the mandate of the UN Mission in South Sudan for one year until April 30, 2027. The mission aims to prevent a return to civil war and monitor the peace agreement implementation.

The resolution to extend the UN mission was adopted with 13 votes in favor, while China and Russia abstained. The UN Mission was established in 2011 following South Sudan’s independence from Sudan after a referendum.

The mission’s mandate is designed to prevent a return to civil war and an escalation of violence in South Sudan. Humanitarian access remains critical as the country rebuilds its infrastructure and governance.

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