The Nile Petroleum Corporation (Nilepet) is South Sudan’s national oil company and has the potential to become one of the country’s largest sources of national income, economic transformation, and industrial development. Nilepet is the major national oil business partner to the Government of the Republic of South Sudan, alongside Asian-owned oil giants—the China National Petroleum Corporation and Oil and India Natural Gas Corporation Limited—after Petronas left South Sudan in 2024. It operates in both the upstream and downstream sectors of the oil and gas industry across the country. Nilepet came to full operational status in 2011 after the secession of the southern Sudan region (now South Sudan) from the then Republic of the Sudan. Through a presidential order, the Sudan Petroleum Company (Sudapet) assets and name were transferred and changed to the Nile Petroleum Corporation (Nilepet). Then, in 2012, Nilepet became an important partner in the oil and gas industry in the Republic of South Sudan, operating in exploration, development, and production in the three oil fields of South Sudan.
It is beyond reasonable doubt that the establishment of Nilepet was purposely for income generation in the energy private sector, thus strengthening South Sudan’s economic stability and helping address the challenge of youth unemployment. Much appreciation goes to His Excellency, President Salva Kiir Mayardit, the President of the Republic of South Sudan, for his wise leadership in entrusting the right people with the right responsibilities. A notable example was the appointment of Hon. Stephen Dhieu Dau as Minister of Petroleum. Recognizing the need for experienced leadership, Hon. Stephen Dhieu Dau facilitated the return of the late Eng. Paul Adong Bith from Ghana to serve as the first Managing Director of Nilepet following South Sudan’s independence.
Together, these two distinguished leaders worked tirelessly to rebuild and strengthen Nilepet, laying the foundation for its growth and positioning it as a capable national oil company before the outbreak of the 2013 crisis. Their vision, dedication, and commitment significantly contributed to the development of South Sudan’s petroleum sector during its formative years.
Beyond participating in oil production, Nilepet can serve as a strategic commercial enterprise that generates sustainable revenues, strengthens national energy security, creates employment, promotes industrialization, and reduces dependence on foreign operators.
As South Sudan seeks to diversify and maximize the value of its petroleum resources, Nilepet should progressively evolve from a minority partner in petroleum ventures into a fully integrated national oil company (NOC) capable of participating across the entire oil and gas value chain, including exploration, production, refining, transportation, storage, distribution, petrochemicals, and international trading.
Since the withdrawal of the Malaysian company Petronas from South Sudan’s petroleum sector in 2024, the Ministry of Petroleum of the Republic of South Sudan has been actively seeking a suitable strategic partner to assume Petronas’ interests in the country’s oil industry. Under the provisions of the Exploration and Production Sharing Agreement (EPSA), Nilepet is the designated entity entitled to inherit Petronas’ participating interest. However, despite this contractual position, Nilepet has not yet assumed the role of successor operator or partner. This has created a perception among the Government of South Sudan and the existing joint venture partners that the company may not yet possess the financial, technical, or operational capacity required to effectively undertake such responsibilities. Consequently, the Government has continued to explore alternative partnership arrangements to ensure the uninterrupted development and production of the country’s petroleum resources. This is not supposed to be the case; we have what it takes as an oil-producing country for the last 26 years. The human resource expertise and the infrastructure support this argument.
Many ordinary South Sudanese citizens think and believe that the human resources in charge of oil production across the three oilfields in the country are foreign experts. This is a big lie, take it from me. Our South Sudanese petroleum engineers, geologists, environmentalists, scientists, and operators are the ones in charge of oil production across the three oilfields. This fallacy must stop; we have the expertise and the management needed. What is needed is the political will and support.
Leveraging Nilepet Subsidiaries to Generate Revenue through Cost Oil
Nilepet has established several specialized subsidiaries to support upstream petroleum operations by providing a broad range of technical, logistical, and commercial services. Key subsidiaries include Nile Logistics, SITEPET (Services and Industrial Technology for Petroleum Company), and Nilepet Insurance Company, each mandated to operate as a contractor within different segments of the upstream oil and gas value chain.
These subsidiaries present a significant opportunity for Nilepet to generate substantial financial resources through the cost oil component under the Exploration and Production Sharing Agreement (EPSA) framework. By competitively providing goods, services, logistics, engineering support, insurance, procurement, and other operational requirements to Joint Operating Companies (JOCs), Nilepet can recover revenues directly from approved petroleum operating costs before the distribution of profit oil. This business model provides a stable and predictable revenue stream independent of profit oil allocations while simultaneously enhancing national participation, local content development, and the capacity of indigenous enterprises within the petroleum sector.
Based on an estimated annual upstream operating expenditure of approximately USD 1.6 billion across the three Joint Operating Companies (JOCs), if Nilepet’s subsidiaries secure 40% of the total contract value through competitive service delivery, the company would realize an annual market share of approximately USD 640 million. This level of participation would significantly strengthen Nilepet’s financial position, reduce dependence on government funding, promote retention of petroleum expenditure within the national economy, and contribute to the transformation of Nilepet into a commercially competitive and revenue-generating state-owned enterprise.
Nilepet Generation of Revenue from the Profit Oil
Under an Exploration and Production Sharing Agreement (EPSA), profit oil is the portion of crude oil remaining after the recovery of petroleum operating costs (cost oil). Nilepet generates revenue from profit oil by holding a participating interest in oil-producing blocks and receiving its contractual share of the profit oil allocated to the Government and its partners.
The process can be explained as follows:
The remaining oil (profit oil) is distributed among the parties according to the provisions of the EPSA. After the exit of Petronas, Nilepet owns major shares in the three JOCs, including 35% in GPPC, 77% in SPOC, and 45% in DPOC. The allocation typically depends on agreed contractual terms, which may include:
- Government of South Sudan;
- Nilepet, as the National Oil Company (NOC);
- International Oil Companies (IOCs);
- Other participating partners.
Based on the above data, can Nilepet be a mere company that only provides 30% salaries payment of its workforce, or can it act as a national source of income?
Challenges Hindering Nilepet’s Transformation into a Competitive National Business Enterprise
Despite its strategic mandate as the National Oil Company (NOC) of South Sudan, Nilepet continues to face significant institutional, operational, and human resource challenges that constrain its transformation into a commercially competitive and revenue-generating state-owned enterprise. Some of the major challenges include:
- Unplanned Recruitment and Workforce Expansion
Nilepet has experienced unplanned and, in some instances, politically influenced recruitment that has resulted in an oversized workforce without corresponding business needs. The absence of a strategic human resource planning framework has increased operational costs, reduced organizational efficiency, and constrained the company’s ability to recruit personnel based on actual technical and commercial requirements. - Employment of Personnel without the Required Qualifications
A considerable challenge facing Nilepet is the appointment of individuals who do not possess the academic qualifications, professional certifications, or technical competencies required for specialized positions within the petroleum industry. This practice weakens institutional performance, reduces productivity, and limits the company’s ability to compete effectively with experienced international oil companies. - Deployment of Unskilled Personnel to Joint Operating Companies (JOCs)
Nilepet’s reputation within Joint Operating Companies (JOCs) has, in some instances, been affected by the deployment of personnel who lack the technical expertise and operational experience required for upstream petroleum operations. Since JOCs operate in highly specialized environments that demand internationally recognized technical standards, assigning inadequately qualified personnel can reduce operational efficiency, increase safety risks, and undermine confidence in Nilepet as a competent strategic partner. - Weak Human Resource Planning and Talent Management
The absence of a comprehensive human resource development strategy has limited Nilepet’s capacity to identify critical skills gaps, develop career progression pathways, and implement succession planning. As a result, the organization has struggled to build a highly skilled workforce capable of managing increasingly complex petroleum operations independently. - Limited Merit-Based Recruitment and Deployment
Merit-based recruitment and promotion remain critical requirements for developing a high-performing national oil company. However, decisions regarding recruitment, promotion, and deployment have not always been consistently guided by competence, experience, and performance. This undermines organizational effectiveness, employee motivation, and professional accountability. - Regional and Ethnic Considerations in Human Resource Deployment
Perceptions or practices of regional and ethnic preference in recruitment and staff deployment, rather than objective merit and competence, can weaken institutional cohesion and reduce public confidence in Nilepet. A national oil company should reflect national unity by ensuring that employment, promotion, and assignment decisions are transparent, competitive, and based on qualifications, professional experience, and demonstrated performance. Adopting a merit-based human resource system would strengthen organizational credibility, improve productivity, and attract and retain highly qualified professionals. - Limited Investment in Capacity Building
Continuous professional development is essential in the petroleum industry due to rapid technological advancement and evolving international standards. Insufficient investment in technical training, leadership development, and international exposure has limited Nilepet’s ability to build a workforce capable of independently managing exploration, development, production, and petroleum service operations.
Strategic Recommendations
For Nilepet to become a truly competitive and revenue-generating national oil company, it should establish commercially managed subsidiaries in engineering, drilling, logistics, procurement, laboratory services, environmental management, fabrication, pipeline maintenance, and technical consulting. By supplying these services to upstream operators under transparent commercial contracts, Nilepet can capture a meaningful share of the expenditures recovered through cost oil while strengthening South Sudan’s local content, creating jobs, and increasing national economic benefits from the petroleum sector.
The Government of the Republic of South Sudan should consider the following agenda in order to make Nilepet an effective and efficient income-producing enterprise.
- Increasing Equity Participation: Nilepet should gradually increase its ownership stakes in producing oil blocks and new exploration licenses through acquisition of additional equity interests, participation in joint ventures with global and regional companies, farm-in agreements, and strategic partnerships with experienced international companies. The current Petronas shares in the three JOCs should not be sold away by Nilepet.
- Direct Participation in Oil Production and Operations:
Instead of serving only as a passive shareholder, Nilepet should operate selected oil fields, manage production operations, provide technical services, own production infrastructure, and operate fields to generate additional income. - Industrialization of the Oil and Gas Sector through Refinery Development: South Sudan exports most of its crude oil while importing refined petroleum products. Expanding domestic refining capacity could increase value addition within the country. Currently, Nilepet owns the Bentiu Refinery in the Unity Oilfields, which has operated since 2012. The Bentiu refinery can produce the following refined petroleum products: petrol (gasoline), diesel, jet fuel, kerosene, liquefied petroleum gas (LPG), heavy fuel oil, bitumen, and lubricants. The economic benefits from this are extremely tremendous. No more reliance on importation of refined petroleum from the Middle East, thus making fuel prices reasonable beyond doubt.
The major task in front of the Government of the Republic of South Sudan is making Nilepet an effective business wing that produces results in the form of money contributed to the national budget. The role of Nilepet is not provision of salaries to its employees, as seen by many as a major achievement and breakthrough. Employees are employed to produce results and do expect to be paid by the end of each month. Therefore, payment of quarterly salaries to Nilepet employees should not be seen as an achievement done by the Nilepet Managing Director/Chief Executive Officer, as perceived by many. The MD/CEO’s achievement should be contribution of a certain amount of income into the national budget and help in solving the existing economic hardship our country is facing nowadays.
Nilepet has the potential to become a leading driver of South Sudan’s economic transformation. By expanding its role in upstream exploration and production, increasing contributions to the national budget, creating employment, investing in domestic refining and associated industries, and progressively building the capability to operate petroleum assets, Nilepet can capture a larger share of the value generated from the country’s natural resources. Achieving this vision will require sustained investment in human capital, sound governance, prudent financial management, and strategic partnerships that transfer technology and expertise while supporting long-term national ownership of the petroleum sector. Through these measures, Nilepet can evolve into a commercially competitive national oil company that contributes not only to government revenues but also to broader industrialization, economic diversification, and sustainable development in South Sudan.
The writer, Dr. Giel Thuok Yoach Thidor, is Director, Nilepet, and former HSE Manager, GPOC. He can be reached via email: thuokyoach@gmail.com
The views expressed in ‘opinion’ articles published by Radio Tamazuj are solely those of the writer. The veracity of any claims made is the responsibility of the author, not Radio Tamazuj.
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