White Nile South Sudan Work “Illegal”-Semi Official Agency

White Nile South Sudan Work “Illegal”-Semi Official Agency
259 words
9 July 2007
02:22 pm GMT
Dow Jones International News
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(c) 2007 Dow Jones & Company, Inc.

LONDON (Dow Jones)–Sudan’s National Petroleum Commission has ruled that White Nile Ltd.’s (WNL.LN) South Sudan operations are now “illegal” but has recommended that the U.K. company be compensated for the loss of its license, the semiofficial Sudanese Media Center said.

The statements, on which a White Nile spokesman could not immediately comment, emerged as the company Friday said it was seeking clarifications over possible plans by the state to withdraw its license. The wording of the agency statements suggest that the government has already moved to stop While Nile operating in the country.

White Nile surfaced on the radar screen of the oil industry in February 2005 when the small London-listed company revealed an agreement with the autonomous government of South Sudan to acquire a 60% stake in Block Ba of the Muglad basin. [ 09-07-07 1449GMT ]

White Nile’s claim was immediately contested in 2005 by French oil major Total SA (TOT).

In a statement dated July 3, 2007, but posted on its Web site at an unknown date, the agency said the National Congress party, which is dominated by inhabitants of northern Sudan, and South Sudan’s Sudan People’s Liberation Movement agreed to confirm the rights of Total as operator of Block B, of which Block Ba is part.

Representatives of the two parties met within the National Petroleum Commission.