South Sudan Defends Transfer of Sudan’s State Oil Company Shares

South Sudan defended its decision to assume control of the shares held by Sudan’s state-owned petroleum company in southern oil fields, calling it a “legitimate act of sovereignty.”

By a presidential decree on Nov. 8, South Sudan assumed ownership of the stakes held by Sudan’s Sudapet in joint operations with companies such as China National Petroleum Corp., Malaysia’s Petroliam Nasional Bhd and India’s Oil & Natural Gas Corp. The Sudanese authorities called the move an “arbitrary decision.”

South Sudan is negotiating new agreements with oil companies operating in the south that should be completed this year, the Ministry of Petroleum and Mining said today in a statement released in Juba, the capital. South Sudan will have sold 33.4 million barrels of oil from July 9 to Dec. 31 for $3.2 billion, according to the ministry statement.

South Sudan assumed control of Sudan’s previous daily production of 490,000 barrels of oil when it gained independence on July 9. South Sudan’s oil ministry said today that the two governments agreed during pre-secession negotiations that the shares would be transferred to southern ownership along with the oil fields upon independence.

To contact the reporter on this story: Jared Ferrie in Juba, South Sudan, at jferrie1@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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