South Sudan Declines to Renew Oranto’s Block B3 License

The Ministry of Petroleum of the Republic of South Sudan has announced that it will not renew the Exploration and Production Sharing Agreement (EPSA) held by Oranto Petroleum for Block B3.

The move comes after a comprehensive assessment of Oranto’s obligations under the agreement, which found that the company failed to meet key work program requirements, including seismic surveys and drilling commitments. The review also determined that Oranto did not fulfill certain financial obligations to the government, along with other project-related commitments outlined in the EPSA.

The decision marks a notable shift from the optimism that surrounded Oranto’s entry into South Sudan’s oil sector. The Nigerian firm secured the Block B3 license in 2017, becoming one of the first African independent companies to enter a sector historically dominated by Asian state-backed players. At the time, Oranto committed to invest $500 million in exploration and development across the 24,000-square-kilometer block, which it operated with a 90% stake.

Block B3 was viewed as a high-potential but underexplored asset within a country that still holds significant untapped hydrocarbon resources. South Sudan has proven reserves estimated in the billions of barrels, yet large portions of the country remain unexplored due to decades of conflict and limited infrastructure. Early assessments even pointed to promising geological fundamentals and long-term upside beyond the country’s mature producing basins.

However, the operating environment has remained challenging. Oil production in South Sudan has struggled to recover fully from the civil war that erupted in 2013, which damaged infrastructure, disrupted output, and deterred investment. Production has fluctuated well below pre-war levels, with ongoing security risks, logistical bottlenecks, and reliance on export pipelines through Sudan continuing to complicate operations.

In this context, delays in exploration activity and unmet commitments have weighed heavily on the government’s decision. Officials have increasingly emphasized the need for credible operators capable of executing work programs in a difficult operating environment and helping restore the country’s oil output.

In line with its policy to promote responsible resource development and attract technically capable investors, the Ministry has concluded that non-renewal of the Block B3 license serves the country’s best interests.

Block B3 is now open for new applications, with the Ministry inviting qualified international and regional oil and gas companies to apply—particularly those committed to timely execution, compliance, and long-term partnership.