NILEPET clears $172 million dollars in arrears, exits default status
The Nile Petroleum Corporation says it has cleared more than 172 million US dollars in arrears owed to PETRONAS and other operational obligations, allowing the company to exit default status across all its joint operating companies.
The announcement was made during a meeting of the Board of Directors held in Juba on Saturday, May 23, chaired by Africano Mande and attended by Managing Director and Chief Executive Officer Emmanuel Athiei Ayual alongside senior government and sector officials.
According to a report presented by the Cash Call Audit Committee, NILEPET successfully settled all monthly operational cash call obligations in the DPOC, GPOC, and SPOC joint operating companies.
The presentation revealed that the corporation cleared financial commitments amounting to 120.8 million US dollars and 51.8 million US dollars linked to PETRONAS participating interests and NILEPET shares in DPOC.
The board was also informed that the remaining historical obligations in SPOC are expected to be fully settled within May and June this year.
Board members praised the work of the audit committee, saying the process has improved financial transparency, accountability, and institutional planning within the corporation.
Following the briefing, the board directed management to focus on long-term financial sustainability and institutional reforms.
Among the resolutions passed were plans to establish dedicated cash reserves for future operational obligations, clear outstanding pipeline tariffs owed to PETCO within two months, and begin a broader financial reconciliation process involving the Ministry of Finance and other stakeholders.
The board also endorsed efforts to attract a strategic investor to support refinery development and the construction of a new crude oil evacuation pipeline from Tharjath to Paloch.
NILEPET says the project is expected to increase production from 13,000 barrels per day to 80,000 barrels per day.
The corporation further pledged to modernize production infrastructure and adopt new technologies aimed at improving efficiency and supporting economic growth.
The Board reaffirmed its commitment to governance reforms, transparency, and sustainable development in South Sudan’s oil and gas sector.
