Juba to break up Total's Block B
South Sudan has decided to break up a massive oil concession largely held by Total, into three blocks, granting one to the French energy company and the others to two foreign firms, government officials said in a Reuters report.
US firm ExxonMobil and Kuwait's Kufpec were identified as two firms who could take charge of the new mapped out blocks, although the companies all declined to comment.
Total has already lodged a challenge to the division of the block Deputy Minister for Petroleum and Mining Elizabeth James Bol told Reuters. The French firm has held onto the block for well over three decades, paying fees to the government of Sudan for the block throughout those years.
However Juba claims it has the right to renegotiate deals agreed upon with the old, united Sudan and would go ahead and divide the concession, which comprises much of South Sudan's eastern Jonglei state.
It was unclear whether Total would have any legal grounds to challenge the decision.
South Sudan's Information Minister Barnaba Marial Benjamin told Reuters one of the three blocks would go to Total. "The other two will be put on tender ... It's going to happen soon," Benjamin added. "The ministry has a green light to go ahead with that."
Asked about Total's previous agreement, he said: "That was with the old Sudan ... This is a different country altogether. They recognize that."
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