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FINANCIAL NEWS
S Sudan breaks oil Block B into three
15 Sep 2012
(MENAFN) Newly independent South Sudan has decided to split an oil block, which is mostly owned by Total SA, into three smaller blocks, granting one to the French energy company and the others to two foreign firms, Reuters reported.
The other two firms were identified as US firm Exxon Mobil and Kuwait’s Kufpec, which had already claimed about a quarter of the mostly unexplored block, known as Block B, according to an official.
South Sudan Deputy Minister for Petroleum and Mining Elizabeth James Bol said Total already objected on the breakup concession decision.
It was unclear whether Total would have any legal grounds to challenge the decision.
Other government officials said South Sudan had the right to renegotiate deals agreed in the old, united Sudan and would go ahead and divide the concession, which includes much of South Sudan’s eastern Jonglei state.
Total has been under pressure from South Sudan to start exploring Block B, which spans an area of about 120,000 square km.
Total stopped operations in the block in 1985 after the resumption of Sudan’s decades-long civil war, which ended with a 2005 peace deal that paved the way for South Sudan to declare independence last year.
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