LAGOS, May 1 – South Sudan has decided not to renew a key oil exploration agreement with Oranto Petroleum for Block B3, following a review of the firm’s performance.
The country’s petroleum ministry said the decision came after assessing the company’s activities over the six-year contract period, which found that several contractual obligations had not been fulfilled, including required seismic surveys and drilling commitments.
Authorities concluded that allowing the license to lapse was in the country’s best interest, reflecting a stricter stance on compliance in a sector that underpins government revenue.
Block B3 has now been reopened for bidding, with the ministry inviting interest from qualified international and regional oil and gas companies as it seeks to attract new investment into the asset.
Oranto Petroleum did not immediately respond to requests for comment.
Oil remains central to South Sudan’s economy, accounting for the bulk of state revenues, making the performance of exploration and production partners critical to fiscal stability.
