By Alan Clement
Confidential government documents have surfaced online revealing that the Ministry of Petroleum requested advance payments totalling $2.5 billion from two foreign oil companies, with repayment tied directly to South Sudan’s future crude oil entitlements.
The leaked letters, dated October 27 and October 31, 2025, were allegedly signed by Undersecretary Eng. Deng Lual Wol and addressed to ONGC Nile Ganga B.V. and CNODC/CNPC respectively.
The surfacing of these widely shared documents prompted public criticism and raised fresh concerns over the government’s handling of oil revenues, particularly the transparency of its financial arrangements and long-term resource commitments.
Social media erupted with commentary under headlines such as “Bol Mel, Deng Lual and the $2.5 Billion Scandal,” fueling speculation about the nature and beneficiaries of the proposed deals.
In response, the Ministry of Petroleum issued a press release on November 13, 2025, categorically refuting the allegations and clarifying its position.
According to the Ministry’s statement, the letters were “preliminary and procedural communications” within ongoing inter-ministerial discussions and did not constitute finalized or approved transactions.
“No funds have been remitted, received, or disbursed to the Government of the Republic of South Sudan,” the Ministry stated in the statement.
The leaked documents indicate that the government sought $1 billion from ONGC Nile Ganga B.V. and $1.5 billion from CNODC/CNPC, both against crude oil entitlements under agreements involving PETRONAS and Nile Petroleum Corporation.
According to the leaked documents, the repayment terms proposed a 54-month schedule using Nile Blend and Dar Blend crude, with monthly deliveries coordinated through joint marketing operations and nominated lifters.
However, in its official clarification, the Ministry emphasized that it does not act independently in financial matters. “The Ministry of Finance and Planning is the sole custodian of all oil revenues and financial transactions,” the statement read.
The statement added that “Any arrangement of this nature would require full inter-ministerial coordination and approval.”
The Ministry further stressed that the requested funds were intended solely for official government purposes, not for personal or individual benefit. If approved, the funds would be deposited into designated government accounts and used in accordance with national financial procedures.
Despite these assurances, the Ministry stopped short of clarifying the exact purpose of the requested funds, leaving questions about the intended use and urgency of the advance payments unanswered.
However, the lack of specificity has fueled further public skepticism, especially in light of past controversies surrounding oil-backed loans and opaque revenue management.
This is not the first time South Sudan’s oil financing practices have come under scrutiny. In May 2022, then-Minister of Finance Agak Achuil Lual stated during a televised press briefing that the country’s oil had been sold in advance up to 2027.
The comment sparked widespread concern and was later walked back, with the then-Minister claiming he had been taken out of context. Nonetheless, it underscored the challenges of balancing short-term fiscal needs with long-term resource sovereignty.
The controversy led to President Salva Kiir summoning the minister for clarification, and it triggered broader calls for transparency in oil revenue management.
The Ministry’s latest statement also condemned the unauthorized leaking of the documents, describing it as a “gross violation of government confidentiality, ethics, and national security protocols.”
According to the Ministry’s statements, preliminary findings point to former Undersecretary Eng. Dr. Chol Thon Abel as the individual responsible for retaining and leaking the classified correspondences.
The matter has reportedly been referred to national security and investigative authorities for legal action.
“The Ministry of Petroleum reiterates its unwavering commitment to transparency, accountability, and the protection of national interests,” the statement concluded, urging the public to disregard misleading information and rely only on verified communications.
As South Sudan continues to navigate economic recovery and peacebuilding, the handling of its oil wealth remains a litmus test for governance and public trust.
The latest revelations whether procedural or substantive highlight the need for clearer communication, stronger oversight, and a renewed commitment to fiscal transparency.