Uche Cecil Izuora
The Government of South Sudan has refused to renew the Exploration and Production Sharing Agreement (EPSA) held by a Nigerian oil firm Oranto Petroleum for Block B3.
The country’s Petroleum Ministry said this citing work programme failure by the company.
Oranto Petroleum, alongside sister company Atlas Petroleum International, is a major Nigeria-based, privately held exploration group founded by billionaire Prince Arthur Eze.
The Ministry said that its review found that “Oranto did not meet key work program obligations, including the completion of required seismic surveys and the drilling commitments stipulated in the agreement.” Kenyan Wall Street said in its report.
It also added that the Nigerian oil company did not fulfill its financial obligations to the Government of South Sudan and related project commitments, as provided for under the EPSA framework.
Founded in Nigeria in the early 1990s, Oranto Petroleum and its sister company Atlas Petroleum are some of the most prolific African oil exploration entities, holding more than 20 exploration licenses spread across Uganda, Ghana, Liberia, Namibia, Nigeria, Senegal, and other countries.
“This decision follows a comprehensive review of Oranto’s performance under the EPSA over the six-year contractual period,” South Sudan’s Ministry of Petroleum said in a statement.
Block B3 is now open for new applications, and the Ministry of Petroleum said it is seeking applications from “serious and qualified international and regional oil and gas companies committed to timely exploration, compliance with contractual obligations, and long-term partnership.”