JUBA, South Sudan — South Sudan has declined to renew an oil exploration licence held by Oranto Petroleum for Block B3, ending a nearly decade-long arrangement that began with a $500 million development commitment and now reflects mounting tensions over performance and compliance in Africa’s energy sector.
The Ministry of Petroleum said on Thursday, April 30, 2026, that it would not extend the Exploration and Production Sharing Agreement governing the block, following a review of the company’s activities over the six-year contractual period.
Origins of the Block B3 Deal
Oranto, founded by Nigerian businessman Arthur Eze, entered the South Sudan project in March 2017 under an agreement with the state-owned Nile Petroleum.
Under the terms of the deal, Oranto held a 90 per cent stake as technical operator, while Nile Petroleum retained a 10 per cent carried interest.
The company committed to invest $500 million in exploring and developing the acreage, located north-west of the Muglad Basin, an area estimated to hold significant oil resources.
Review Finds Unmet Commitments
According to the ministry, Oranto did not meet key operational requirements set out in the agreement.
Officials said the company failed to complete required seismic surveys and drilling commitments and did not fulfil financial obligations to the government.
The ministry said the decision to end the licence followed a comprehensive assessment of the company’s compliance with technical and financial benchmarks.
Block Reopened to New Bidders
Authorities said Block B3 has now been reopened to new investors, with the government inviting applications from companies capable of meeting contractual obligations and advancing exploration in line with national policy.
Officials described the move as part of a broader effort to ensure that oil licences result in measurable development activity and sustained investment.
Wider Disputes Across the Continent
The decision comes as Oranto has faced similar disputes in other African jurisdictions. In Senegal, the company rejected claims that it failed to meet obligations on the Cayar and St Louis offshore licences.
Oranto said it suspended further investment in those projects in 2025 after authorities required a $25 million bank guarantee, which it argued differed from previously accepted corporate guarantees.
“For record purposes, Oranto has invested over $45 million in seismic surveys, acreage rental, community projects, and training of Senegalese staff,” the company said, disputing the government’s account.
Senegal later revoked the licences, citing insufficient exploration activity, including the absence of drilling operations on the offshore blocks. Oranto described that characterisation as “a false narrative” and said it had exited the licences before the revocation.
Challenges of Oil Exploration
The developments highlight broader challenges facing oil exploration in Africa, where projects often involve high capital requirements, complex regulatory frameworks and extended timelines before production.
Governments have increasingly emphasised enforcement of contractual obligations, including drilling schedules and financial commitments, as they seek to maximise returns from natural resources.
Oranto has said it has invested more than $500 million in exploration activities across the continent and positions itself as an early-stage exploration company that identifies prospective assets before bringing in development partners.
“Oranto Petroleum remains respectful of the rule of law in all jurisdictions where it operates and urges the public to disregard narratives that demarket African investment opportunities geared towards the greater good of Africa and her citizens,” the company said.
Sector Outlook
South Sudan’s Ministry of Petroleum said the non-renewal of the Block B3 licence reflects its commitment to transparency, accountability and the sustainable development of the oil sector.
The reopening of the block signals an effort to attract new investors with the technical capacity and financial resources to advance exploration under stricter compliance expectations.
