(JUBA COUNTY) – South Sudan has officially confirmed it has requested $2.5 billion (SSP 17 trillion) in oil backed loans from two international companies operating in the country, according to the Ministry of Petroleum.
The request includes $1 billion (SSP 7 trillion) from India’s ONGC Videsh and $1.5 billion (SSP 11 trillion) from China National Petroleum Corporation (CNPC). The ministry said the funds would be used exclusively for official government purposes and not for personal benefit. Both loans are proposed to be repaid within 54 months from disbursement.
The $2.5 billion request exceeds the government’s annual budget, which is less than $2 billion (SSP 14 trillion), and adds to the approximately $2.2 billion (SSP 16 trillion) in oil backed loans the United Nations estimates South Sudan has received since independence in 2011.
The ministry sent formal letters to ONGC Videsh and CNPC in October 2025, confirming the requests. It rejected what it described as defamatory commentary circulating on social media regarding the loans.
State-owned Nile Petroleum Corporation, ONGC Videsh and CNPC have not responded publicly to the loan requests, according to Reuters.
The International Monetary Fund has raised concerns about the growing impact of oil-backed borrowing on South Sudan’s public debt, highlighting the need for careful monitoring and reforms.
Oil production in South Sudan has declined in recent years, limiting the government’s ability to generate revenue for repayment. Analysts say the reliance on oil-backed credit, while providing immediate cash, raises long-term financial risks and can constrain fiscal policy if oil prices fluctuate or output drops further.
Experts emphasise that transparent use of the requested funds and strong governance will be essential to prevent further debt accumulation and ensure that the loans support development priorities rather than creating new financial stress.
South Sudan Seeks $2.5 Billion While $2.2 Billion Oil Debt Remains
| Key Issue | Details |
|---|---|
| New Loan Request | $2.5 billion (SSP 17 trillion) in oil-backed loans |
| Breakdown | $1.5 billion (SSP 11 trillion) from CNPC and $1 billion (SSP 7 trillion) from ONGC |
| Existing Oil Debt | $2.2 billion (SSP 16 trillion) since 2011 |
| Annual Budget | Less than $2 billion (SSP 14 trillion) |
| Repayment Terms | 54 months after disbursement |
| Use of Funds | Official government purposes only |
| IMF Concerns | Oil backed loans increase public debt risk |
| Production Constraints | Oil production declining, limiting revenue |
| Governance Notes | Transparency and proper fund management critical |