Reuters reported that South Sudan, which recently seceded from Sudan, plans to divide an oil block held mainly by Total SA (NYSE:TOT) into three parts. Total will receive only one of the new areas.
As quoted in the market news:
One oil industry source identified the other two operators as U.S. major Exxon Mobil and Kuwait’s Kufpec, but the government did not confirm the names.
Total had already challenged the decision to split the concession, granted before South Sudan declared independence from Sudan last year, Deputy Minister for Petroleum and Mining Elizabeth James Bol told Reuters.
But 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 comprises much of South Sudan’s eastern Jonglei state – a remote region struggling with an insurgency and violent tribal clashes.