24 Sept 2023, New York, USA – The government has finalized a 3 billion US dollar deal with an American Oil company, Caltech Investment, to invest in the oil sector in South Sudan.
The American- based company will partner with the government to purchase and take over the shares of the Malaysian State-own company, PETRONAS, which is now withdrawing from South Sudan’s oil sector.
The leadership of the American Oil Company led by its Chief Overseer Mohammed Malik met with President Kiir in New York on Friday, marking the official entrance of the American company into the South Sudan’s Oil sector.
The Minister of Finance and Planning Dr. Barnaba Bak Chol says the 3 billion US dollar agreement will give an opportunity for South Sudan to grow its oil sector.
Bak said 1.2 billion US dollars will be invested in the oil sector, while the rest will go for other vital infrastructure such as roads.
The Chief Overseer of Caltech Investment Mohamed Malik says the acquisition fits appropriately with the company’s strategy of expanding and focusing on the delivery of ‘Projects that Matter’ in South Sudan and the sub Saharan region.
The Company will partner with the government to buy the Malaysian state-owned company’s entire oil and gas asset portfolio in South Sudan for a total cash consideration of up to 1.25 billion US dollars.
The Chief Overseer of Caltech Investment Mohammed Malik said they are ready to move into South Sudan to begin formal procedures for the takeover.
The company will in the next two months deliver eight hundred million US dollars to South Sudan to kick-start the project.
