South Sudan eyes new state outfit for Marathon stake

South Sudan eyes new state outfit for Marathon stake
277 words
16 November 2007

A NEW state-owned company is to be set up in South Sudan that will take over Marathon Oil’s 22.5% stake in Block B, writes Barry Morgan.

French oil giant Total recently had its production sharing contract or Block B approved by the North-South National Petroleum Commission fwith partner Kuwait Petroleum Company, alongside the South Sudan state-owned oil company NilePet and its Khartoum counterpart Sudapet.
Government of South Sudan (Goss) Vice President Riek Machar Teny confirmed the move but sceptics have queried why neither President Salva Kiir nor newly appointed Energy, Mining & Industry Minister John Luk Jok failed to issue statements.

Goss Legal Affairs Minister Michael Makuei said that 55% of the new company’s shares will be transferred to UK minnow White Nile, which was forced to halt exploration work in June by Kiir.

The choice of using White Nile, 50% owned by Goss, has prompted observers to question the need for a further state-owned entity to manage the equity in Block B.

Machar Teny has been quoted as referring to White Nile as the “obvious partner” for the project, as Goss has an interest in both the company and exploration.

White Nile is also understood to have close links to the family of Colonel John Garang de Mabior, the late leader of the Sudan Peoples Liberation Army (SPLA).

Makuei is an SPLA member and Machar Teny has publicly backed the company’s bid to remain a player in South Sudan.