South Sudan oil firm cuts staff salaries by half amid production woes

JUBA – Nile Petroleum Corporation (Nilepet), South Sudan’s state-owned oil giant, slashed employee salaries by 50% in a bid to maintain operations during a joint Board meeting, citing production disruptions caused by the ongoing conflict in Sudan.

Engineer Bernard Amour, Nilepet’s Managing Director, said the Board considered staff reductions due to Sudanese conflict’s significant impact on oil production and export.

He said the Board ultimately opted for salary cuts to preserve jobs.

“This decision was made to ensure no one loses their job,” Amour said. “It will also help us maintain operational continuity despite the reduced revenue streams caused by the geopolitical issues related to the conflict in Sudan, which has impacted oil production.”

South Sudan relies heavily on oil revenue to pay employee salaries and deliver social services.

With roughly 90% of the national income stemming from oil sales, the Board prioritized maintaining the workforce while adapting to the economic crisis.

Established in 2023, NilePET oversees oil exploration, development, production, and import, employing over 1,500 staff. A March 16, 2024, letter from Sudan’s Ministry of Energy and Petroleum to the South Sudanese government confirmed inaccessibility to South Sudan Pump Stations 4 and 5 due to the conflict.

“The ongoing geopolitical issues related to oil and goods, like the conflict in Sudan, directly affect us all,” Amour added.

The salary reduction, effective immediately, means a staff member previously receiving $500 will now get $250. The Board reportedly considered three options before settling on the 50% cut.