NILEPET Managing Director Eng. Bernard Amour addresses a press conference in Juba. Wednesday, December 6, 2023. (Photo: Awan Moses)

The Managing Director of Nile Petroleum Corporation says the reduction in staff salaries by half is to ensure none of the employees lose their jobs in face of economic crisis.

“A very informative decision and was also a decision that make sures that everyone is not losing his/her job,   but genuinely that was the best option for now off course,” said Eng. Bernard Amour Makeny 

According to him, the decision aims to maintain operational continuity amid reduced revenue streams resulting from the geopolitical issues relate oil including the conflict in Sudan.

“We are all affected by geopolitical issues related to oil and good example is the conflicts in Sudan has directly imparted us,” he said.

Makeny told the aggrieved staff to learn to appreciate rather than complaining, citing they are better off compared to civil servants he said have gone for eight months without pay.

Makney clarified that the Nilepet Management presented three options including downsizing of staff to address the crisis, but the Board of Directors opted for the salary cuts to avoid some employees losing their jobs.

“So that was not my decision,  it was management decision. Presented to the board of Directors and the Board of Directors looked at the three option, and the best option is what we just chose, cutting salaries by 50% and then observe the situation over time.

However, he warns should the situation escalate, the state-own firm will be forced to lay off what he describes as ineffective staff.

“S0 obviously, we will be subjected to look at who is really effective, who is not effective, who is needed and who is not needed, but that is at the latest stage and the worst case scenarios,” he added.

In March, the Government of Sudan declared a force majeure on South Sudan crude oil on March 16, 2024, citing it is unable to facilitate the transportation of South Sudan crude oil through the Jabalayn-Port Sudan Pipeline due to interruptions from the ongoing conflict.

This meant that Sudan revoked a contractual clause, exempting it from fulfilling its obligations under the agreement due to unforeseen circumstances or events beyond its control.