NilePet: From National Oil Ambition to Budget Black Hole

By SSYR Editorial Team, July 2025

1. Overview: NilePet's Formation & Role

NilePet, founded in 2009 and transferred to South Sudan post-2011 independence, is the nation’s oil crown jewel. It partners in Blocks 1, 2, 3, 4, 5A, and 7, but lacks domestic refining capability and relies on Sudanese pipelines for exports.

2. Output & Market Access

Production fell from 300,000 to about 150,000 barrels per day post-conflict. Despite reaching global markets via traders, the export system is plagued by opacity and weak contract oversight.

3. Financial Secrecy & Elite Capture

• $227M in oil revenue (2014–2015), but minimal transparency.
• $80M allegedly funneled to militias and security forces.
• Military figures on board (e.g., Lt. Gen. Akol Koor), raising conflict-of-interest alarms.

4. Institutional Crisis Inside NilePet

CEO corruption claims, unpaid workers, and salary cuts reveal deeper dysfunction. Insider reports cite embezzlement and luxurious lifestyles at the top amid growing staff unrest.

5. UN Findings: The Budget "Mystery"

UN experts warn of off-budget military spending, no audits, and undisclosed oil contracts. NilePet allegedly operates outside parliamentary and public scrutiny.

6. Needed Reforms

1. Independent audits and full contract disclosures.
2. Remove military officials from executive boards.
3. Integrate NilePet revenue into national budgets.
4. Create sovereign wealth fund for future generations.

Conclusion

What should be South Sudan's lifeline risks becoming its greatest liability. Only reforms and transparency can redirect NilePet from a national liability to a public asset.