Malaysia’s state-owned energy company Petronas has announced its withdrawal from South Sudan as it restructures its investment strategy to align with business conditions.

The decision was made following two years of divestment initiatives, consistent with Petronas’ long-term investment strategy amid a changing environment and rapid energy transition.

The company stated that its subsidiary, Carigali Nile, will work with stakeholders to ensure a smooth transition.

The withdrawal follows the British company Savannah Energy’s exit from a $1.25 billion deal to purchase Petronas’ oil and gas assets in the East African nation due to disagreements over terms.

Savannah stated that it remains in active discussions with relevant parties regarding a potential alternative transaction related to acquiring Petronas’ assets.