South Sudan’s Ministry of Petroleum stated, “Oranto did not meet key work program obligations, including the completion of required seismic surveys and the drilling commitments stipulated in the agreement.” The government declined to renew Oranto Petroleum’s Exploration and Production Sharing Agreement for Block B3.
This decision follows a comprehensive review of Oranto’s performance under the EPSA over the six-year contractual period. The company failed to fulfill its financial obligations to the Government of South Sudan.
The situation in South Sudan’s oil sector remains complex. The country has faced significant challenges since gaining independence in 2011, including a civil war that disrupted operations and hindered humanitarian access.
Key facts:
- Block B3 is now open for new applications from qualified international and regional oil and gas companies.
- The United Nations Security Council 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 peace agreement implementation.
The UN Mission was established in 2011 following South Sudan’s independence from Sudan after a referendum. Its resolution was adopted with 13 votes in favor, while China and Russia abstained.
The mission’s mandate is designed to prevent a return to civil war and an escalation of violence in South Sudan. As these developments unfold, officials have not confirmed how this will impact future oil exploration efforts in the region.