South Sudan Transfers Petronas Oil Shares to China, Deepening Energy Ties with Beijing

(Beijing) – South Sudan is strengthening its energy partnership with China by transferring a 30% stake in its oil sector, previously held by Malaysia’s Petronas to Chinese investors. The decision follows a series of high-level meetings in Beijing between South Sudanese government officials and leaders of China’s oil industry.

The South Sudanese delegation included Foreign Minister Mandy Simaya, Undersecretary of Petroleum Deng Lual, and the Director General of the National Petroleum Company, Ngor Ayouel. The delegation met with Huo Jizong, President of the China National Petroleum Corporation (CNPC), to discuss expanding cooperation in the oil sector.

A major part of the talks focused on restructuring ownership in Dar Petroleum Operating Company, a joint venture that manages oil production in South Sudan. With the withdrawal of Malaysia’s Petronas from the project, South Sudan proposed allocating the vacant 30% share to CNPC. If finalized, this would increase China’s stake in the venture to over 70%.

The Chinese side responded positively to the offer, viewing it as an opportunity to expand its operational and administrative control in the energy-rich country. China had previously expressed interest in obtaining more authority over the company’s management and infrastructure.

Besides the share transfer, the meetings also covered broader cooperation. Discussions included potential Chinese support for rebuilding South Sudan’s infrastructure, enhancing security at oil sites, and strengthening long-term economic relations. Officials from both sides emphasized the importance of deepening their strategic partnership.

This development follows the official exit of Petronas from South Sudan in August 2024. At that time, the Malaysian energy firm confirmed that its subsidiary, Petronas Carigali Nile Limited (PCNL), had ended operations in the country after a two-year strategic review. The decision was part of a broader plan to focus on energy transition and respond to global changes in the oil and gas industry.

By June 2025, Chol Deng Thon, Undersecretary at South Sudan’s Ministry of Petroleum, confirmed that state-owned Nile Petroleum Corporation will take over the operational responsibilities previously held by Petronas.

South Sudan, which gained independence in 2011, relies heavily on oil exports for revenue. The country has sought to attract foreign investment to boost its struggling economy, rebuild infrastructure damaged by years of conflict, and diversify international partnerships. China has remained one of South Sudan’s key allies in the energy sector and broader economic development.