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Oil crisis in South Sudan: why Malaysian Petronas is slamming the door

Petronas is leaving South Sudan after nearly 30 years of oil exploitation, accusing the government of blocking the sale of its assets. This departure of the Malaysian oil company, against a backdrop of environmental crisis and economic decline, raises questions about the future of the black gold industry in the youngest country in the world.

The only source of income for the South Sudanese state, the oil industry is in the midst of a crisis. Production has fallen from 300,000 barrels per day at independence in 2011 to less than 50,000 barrels in 2024, largely because of the war in Sudan.

For Boutros Manani Magaya, chairman of the National Assembly's subcommittee on oil, the departure of Petronas is a hard blow: “ Why have there been no additional investments in this sector to increase production or to maintain it at the same level? ? This really raises questions. We know that South Sudan has large oil reserves. Why didn't Petronas and other companies continue to invest in the industry ? »

Pollution denounced

The reasons could be found in the upcoming financial and environmental audits, which could explain this hasty departure.

Accusations of pollution linked to the oil industry continue to grow. Gizam Moses, representative of the Civil Society Coalition on Natural Resources (CSCNR), evokes serious consequences for local populations: “ We have received numerous reports of children being born with severe deformities due to pregnant women's exposure to oil pollution. These stories are clear indications that our laws governing the exploitation of natural resources are not respected by companies operating in our country. »

Also readSouth Sudan: suspension of oil exports undermines economy and sends prices skyrocketing

Companies called to account

For Joseph Africano Bartel, undersecretary at the Ministry of the Environment, responsible companies will not be able to escape their obligations, even after their departure: “ Anyone who came to this country before independence, taking advantage of the lack of laws and controls thinking they were going to make money while neglecting the environment, should think twice. Because they are not going to disappear. Petronas or any other company operating in South Sudan and failing to protect the environment will be held responsible. »

Bartel cites as an example the 12 billion dollars that the Anglo-Dutch oil company Shell had to pay to victims of oil pollution in the Niger Delta.

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