By William Madouk
South Sudan has cleared $120 million in oil-related debt, officials said, a move that could help the government resume salary payments after months of delays.
The oil-dependent nation, which relies on Sudan’s pipelines to export crude, has struggled with disruptions that hit revenues and left many civil servants unpaid for nearly a year.
President Salva Kiir Mayardit was briefed in Juba on the latest developments in the country’s oil sector, which provides the bulk of national revenue.
The report, presented by Eng. Emmanuel Athiei Ayual of Nile Petroleum Corporation, highlighted progress in restoring crude oil exports and fixing long-standing financial problems.
“Nilepet has cleared USD 120 million in Dar Petroleum liabilities inherited from Petronas, strengthening its financial position to meet salary obligations and support priority Government responsibilities,” said Ayual.
He added that oil revenues are projected to increase as a result of these improvements.
More talks are expected in Juba later this month, with Sudanese firms like Petco and Bapco.
“Officials from Sudanese oil companies, including Petco & Bapco, are expected in Juba later this month for further discussions on transportation arrangements,” he added.
Meanwhile, a Qatar-based firm, Gulf Petroleum LLC, has shown interest in buying a 30 percent stake in oil assets previously held by Petronas.
“While 35 Gulf Petroleum LLC, a Qatar-based company, has expressed interest in acquiring a 30 percent stake previously held by Petronas, now under Nilepet’s control,” he announced.
Nilepet says it remains open to more investors, as the government looks to stabilize the economy and ensure workers are paid on time.
The developments follow talks in Port Sudan aimed at resolving disputes over pipeline access and transit fees.
Nilepet is a government-owned oil and gas company in South Sudan. The company has over 2,000 staff members.
Civil servants described the difficulties they faced in supporting their families during the salary drought.