UAE Investor Initiates Arbitration Against South Sudan Over Oil Assets

An investor based in the United Arab Emirates has initiated international arbitration against South Sudan and the state-owned Nile Petroleum Corporation over oil assets. The case concerns the failure to complete an agreement, signed in March 2025, to transfer oil production assets previously owned by Petronas. The investor claims to have paid $50 million toward the deal and seeks either the agreement's completion or compensation for alleged losses exceeding $300 million. The Supreme Court of Mauritius has issued a temporary injunction preventing Nilepet from selling or transferring the disputed assets until February 5, 2027.

The dispute involves significant oil production assets and adds to the legal and financial challenges facing South Sudan, which is already facing a separate arbitration case from Petronas regarding a collapsed $1.25 billion deal from 2024. The arbitration challenges the management and transfer of key national oil resources.