The Nile Petroleum Corporation (Nilepet) has announced that it has reached an agreement with Sudanese transit companies to stabilize the process of exporting South Sudan’s crude oil to the international market. This agreement, combined with the company’s clearance of a previous $120 million debt, is considered a major breakthrough for the country’s financial sovereignty and its primary source of income.
This announcement was made at the conclusion of a high-level diplomatic mission to Port Sudan on March 29 by Nilepet’s Managing Director, Engineer Emmanuel Athiei Ayual. The trip primarily focused on resolving disputes regarding transportation tariffs (fees) and preventing potential disruptions to the oil flow by Sudanese infrastructure networks.
For months, relations had been strained due to payment disputes between Juba and the Sudanese oil transit companies—specifically Petrolines and the Bashayer Pipeline Company (Bapco). This disagreement had created fears that oil exports, which are the backbone of South Sudan’s economy, could be halted. In the discussions held in March, both parties agreed to temporarily suspend any unilateral decisions regarding oil transportation. This freeze on tariff adjustments will remain in effect until April 20, when a high-level Sudanese delegation is expected to arrive in Juba for final negotiations.
Engineer Ayual stated, “Our discussion with Petco and Bapco was to ensure that our oil is not disrupted due to unilateral tariff decisions. We have reached an understanding to halt these disputes until we arrive at a sustainable agreement by the end of this month.”
In addition to the diplomatic success, Nilepet confirmed that it has fully paid off the $120 million debt inherited from the Malaysian oil giant Petronas. It is recalled that Petronas, which had a significant stake in South Sudan’s oil fields, exited the country last year. The settlement of this debt is expected to significantly increase Nilepet’s cash flow (liquidity) starting from May.
“By paying this $120 million debt, Nilepet is transitioning to a new chapter of financial strength,” Ayual said, adding, “This financial capacity will enable us to fulfill critical financial responsibilities for the government in addition to paying employee salaries.”
