BY JOSEPH GATLUAK RUOM
With the recent withdrawal of Malaysian Company Petronas from South Sudan’s oilfields, we find ourselves at a crossroads. Our oil industry, while rich in potential, remains underdeveloped and heavily reliant on foreign companies. With Petronas’ exit, we have an opportunity to empower national and indigenous private companies to take a leading role in developing our oil sector. NILEPET, our National Oil Corporation, must be strengthened and given control over the upstream sector. More importantly, local companies like Trinity Energy Limited are perfectly positioned to step into the vacuum left by Petronas and drive the next phase of South Sudan’s oil development. To chart a way forward, perhaps South Sudan can draw inspiration from Petronas Malaysia’s transformative growth over the last few decades. Petronas is today a global powerhouse ranked annually in the Fortune Global 500, But. It was not always the oil giant it is today. Its humble beginnings offer critical lessons for South Sudan as we seek to shape our oil industry and empower local companies to take the lead.
Founded in 1974, Petronas was not an overnight success. Before its creation, Malaysia was heavily reliant on foreign oil companies like Royal Dutch Shell (now Shell plc), which began oil exploration in the country in the early 1900s. By the 1970s, Malaysia was producing around 90,000 barrels of oil per day, but much of the profits were lost to foreign entities due to the lack of local empowerment. In a bold move, Malaysia’s Chief Minister of Sarawak, Abdul Rahman Yakub, proposed the formation of a national oil company, which led to the Petroleum Development Act of 1974 and the incorporation of Petronas.
The early years of Petronas were indeed challenging, as foreign companies like Exxon and Shell resisted efforts to transfer their concessions to the new national entity. However, with strong government backing, Petronas served notice that all foreign oil companies operating in Malaysian waters would need to negotiate or be considered illegal by April 1975. Eventually, these companies surrendered their concessions, and Petronas began its ascent as a leading player in the global oil industry. By 1980, just six years after its creation, Petronas had grown into a significant force, overseeing Malaysia’s oil exploration and production. This transformation was made possible by the decisive and supportive role of the Malaysian government, which provided Petronas with the regulatory backing, financial resources, and political support needed to succeed. Government regulation was not an obstacle; it was the critical ingredient that enabled Petronas to not only survive but thrive on the global stage. Today, South Sudan finds itself in a similar position to Malaysia in the 1970s.
Trinity Energy and NILEPET are in a particularly strong position today, compared to Petronas at its founding in 1974. For example, over the past decade, Trinity has established a respected global presence, with its brand recognized in markets such as the USA, South Africa, Dubai, the UK, and East Africa. Leading financial institutions like the Africa Export-Import Bank (Afreximbank) have shown their confidence in Trinity by providing significant financial backing. With a positive credit rating and continued support from well-regarded institutions in Dubai and London, Trinity is poised to take a leading role in South Sudan’s oil sector.
That said, just as Petronas benefited from strong government backing in its early years, Trinity and other locally owned entities must receive similar support to fully unlock their potential. The government of South Sudan should be encouraged to continue creating an enabling environment through policies and regulations that empower local companies, especially in the vital oil sector. Should Trinity be allowed to acquire shares from Petronas and expand its role in upstream operations, the benefits will be transformative. Trinity’s combination of technical expertise, financial strength, and international exposure can significantly contribute to the growth and resilience of South Sudan’s oil industry, ensuring it thrives for years to come. More importantly, the wealth generated by empowering local companies like Trinity would stay within South Sudan, providing much-needed economic development and stability. Hundreds of millions of dollars that currently leave our country through foreign partnerships could instead be reinvested in our local economy. This would create jobs, improve infrastructure, and spur sustainable development, all while reducing our dependency on international players.
Therefore, South Sudan is pivotal in its oil industry’s history. By looking at Petronas’s success and understanding the critical role government regulation and support played in its rise, we can chart a similar path. Trinity Energy has the technical, financial, and global expertise needed to replace Petronas and lead the next chapter of oil development in South Sudan. Now, it is up to us—and our government—to empower them and build a stronger, self-sustaining national economy.
Joseph Gatluak Ruom is an engineer pursuing his postgraduate studies in Cairo, Egypt. He can be reached at ruomdit@gmail.com.
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