A Malaysian company has expressed doubts over participation in the recently organised oil licensing drive in South Sudan.

Petroliam Nasional Bhd (Petronas) told a local media house that it may not seek a license for the exploration due to the difficult market dynamics. However, the firm remained conservative with the information but only said that it was evaluating its business strategies before sanctioning any decision pertaining to the participation in the exercise this year.

“Due to challenging market conditions, Petronas is undertaking a strategic review of its assets to ensure that its portfolio remains resilient and commercially viable.

“Therefore, Petronas may not be participating in the South Sudan’s first licensing round this year,” the firm said in an emailed statement sent to The Edge Markets, a Malaysian media news website.

The reason behind Petronas’ potential withdrawal remains unknown given that the firm performed well in its first 2021 financial quarter, increasing its Profit after Tax (PAT) from USD$1.08 billion to USD$2.23 billion.

“Petronas’ financial performance in the first quarter of 2021 reflects our continuing commitment to commercial and operational excellence while preserving a healthy level of liquidity to strengthen our resiliency,’’ Group CEO of Petronas Tengku Muhammad Taufik said in a press release shared on the company’s website.

“The deliberate steps taken throughout 2020 have provided the Group with a stronger foundation to better withstand volatile market conditions while we contend with the global energy transition,’’ he added.

Last month, the Ministry of Petroleum (MoP) announced the first oil licensing round after the discovery of the oil blocks. The drive targets investors mainly from Malaysia and China.