NilePet-built road in Juba. (Awan Moses/Eye Radio).

The Nile Petroleum Corporation has cleared $120 million in liabilities inherited from Petronas under Dar Petroleum, a move expected to strengthen the company’s finances and stabilize South Sudan’s oil exports.

The Managing Director, Engineer Emmanuel Athiei Ayual, reported the development after a visit on March 29, where discussions were held with Sudanese firms Petrolines and Bashayer Pipeline Company on transportation tariffs and the flow of crude oil.

The talks resolved outstanding financial disputes that had previously disrupted oil exports. Both parties agreed to suspend any unilateral decisions affecting crude transportation until April 20, when Sudanese officials are expected in Juba for further negotiations.

“Our trip on 29th of March was basically to engage on the outstanding issues pertaining the tariffs on the transportation of crude to Port Sudan where we met and engaged the two companies, that is Petco & Bapco, and the two parties have agreed to resolve the outstanding issues in terms of the tariffs so that the two companies, that is Petrolines and Bashayer Company Limited could not be upsetting or taking a unilateral decision to take our crude on their behalf, ” Ayual said.

“We have resolved that this has to be suspended until 20th of April where they will travel to South Sudan so that we can meet again and resolve this outstanding.”

In addition to resolving tariffs, Nilepet has cleared the $120 million owed to Petronas under Dar Petroleum.

“Nile Petroleum would also like to make it public notice that we have now cleared the $120 million USD which we had inherited from Petronas that has left the oil fields.

“As of May, the company will be doing well in terms of liquidity and this is why we are also in a better position to make sure that we pay our salaries to our Nilepet staff and also to shoulder some of the responsibilities for the government,” Ayual added.

Officials said the agreement is expected to stabilize crude exports, improve operational efficiency, and increase national oil revenues.

Sudanese firms, including Petco and Bapco, are expected in Juba later this month to continue talks on transportation arrangements. Meanwhile, Gulf Petroleum LLC has expressed interest in acquiring a 30 percent stake previously held by Petronas, now under Nilepet’s control.

Nilepet reiterated that it remains open to future investment opportunities in key oil consortia, including SPOC and GPOC, to strengthen South Sudan’s petroleum sector.