South Sudan, Russia’s Rosneft, on the brink of massive oil deal
Once executed, the partnership will enable South Sudan to refine and transport its oil locally, increase production, cut dependency on neighboring countries’ infrastructure, and boost national revenues.
By Emmanuel Mandella
South Sudan’s national oil company, Nile Petroleum Corporation (NilePet), is in the final stages of a pact with Russian energy powerhouse Rosneft.
The deal, unveiled during the Saint Petersburg International Economic Forum (SPIEF 2025), will see Rosneft construct modern oil pipelines and refineries across South Sudan, an infrastructure project that could cushion the country from overreliance on other country’s pipelines and refineries.
“We are now in the final stages and the MoU was signed in Juba. We are currently working on technical follow-ups to finalize the full agreement,” said Kamal Mabok, NilePet’s Senior Technical Advisor, from the sidelines of SPIEF 2025 event.
Mabok stated that Nilepet is currently following up on the technical issues to finalize the deal
Once executed, the partnership will enable South Sudan to refine and transport its oil locally, increase production, cut dependency on neighboring countries’ infrastructure, and boost national revenues.
Rosneft’s engagement marks a strategic milestone in the bilateral relationship between South Sudan and Russian. Involvement of the state-owed energy behemoth, could turn the tides in the country’s oil sector, which has been starved due to the ongoing war in Sudan.
Cautious optimism
“This is encouraging. This is motivating if it is translated into reality,” said Edmund Yakani, Executive Director of the Community Empowerment for Progress Organization (CEPO), in response to the news.
Yakani welcomed the progress, but warned against repeating past failures.
“We have seen similar proposals in the past that yielded no results. One such example is the Bentiu Oil Refinery, which, instead of functioning as a cornerstone of our domestic oil consumption strategy, has become what I now describe as oil tourism,” Yakani said.
He urged both NilePet and government officials to treat the deal as a turning point.
“We have consumed enough oil revenue without building robust national infrastructure. That is why we continue to export our oil through foreign pipelines, paying high fees and losing value,” he noted.
Yakani further called for long-term planning, stressing that oil wealth should be invested into sectors like agriculture, education, roads, and health.
“If we are serious about our future, then we must build oil infrastructure that can outlive the oil itself; facilities that can serve other sectors,” he emphasized.
Strengthening Bilateral Ties and Economic Vision, the proposed agreement is also seen as a gateway to stronger diplomatic and economic cooperation between Juba and Moscow, with observers seeing the development as a new pathway for Russian investments in the oil and other critical sectors.
The Russian embassy
To have a stronger footing in the country, Russia is now looking forward to opening its embassy in South Sudan by October this year. On Tuesday, while bidding farewell to the East African nation’s hig-level ICT delegation after the SPIEF 2025 forum, South Sudan Ambassador to Russia Federation, Chol Tong Mayay encouraged the government to refocus on real business with Russia, saying the European country could unlock most of the country’s investment opportunities.
Other than the projected pact in petroleum, Amb. Mayay said the two countries have signed many memoranda, including on mineral extraction.
