The ministry of petroleum in South Sudan has terminated negotiations for a new exploration contract for the French international oil company Total, the ministry said.
In a statement extended to Radio Tamazuj on Wednesday, the ministry indicated that it has ended negotiations with Total Oil Company for a new Exploration and Production Sharing Agreement (EPSA) for B1 and B2 after Total insisted on a long exploration period and economic terms not viable for the government.
The oil minister, Ezekiel Lol Gatkuoth said the ministry is now open to discuss the agreement with other investors, saying they had reached an impasse with Total.
“South Sudan needs to move quickly to bring investment to blocks B1 and B2, and after a long period of talks Total has been unable to agree on economic terms and a timeline that work for the country. Without this cornerstone in place, the ministry of petroleum cannot continue to negotiate an EPSA with Total. We are keen to discuss the exploration of Blocks B1 and B2 with new parties,” he said.
The French company alongside Tullow Oil and Kuweait Foreign Petroleum Exploration Company (KUFPEC) have been negotiating with the government to enter into a new agreement for block B1 and B2 since 2013.Total formerly held an exploration agreement form Block B, before it was later split to blocks B1, B2 and B3.
Last year the ministry awarded the EPSA for Block B3 to Oranto Company.