A fuel station owned by Nilepet in Juba, South Sudan | Credit | Courtesy

President Salva Kiir has reconstituted the Board of Directors of the Nile Petroleum and Gas Cooperation, NilePet.

Kiir appointed the Minister of Presidential Affairs, Nhial Deng Nhial as the new chairperson of the board after relieving former Minister, Mayiik Ayii.

He also named the Minister of Environment and Forestry, Josephine Nyapon Cosmas as deputy chairperson.

The head of Nilepet, Dr. Chol Deng Thon retained his position as the Secretary of the board.

In a decree issued yesterday, Kiir appointed Ambassador Mayen Dut Wol, Juan Alice Joshua, Dr. Khalid Maror Riak, Chuol Pal Gai Lam and Dr. Benjamin Bol Mel as members.

The National Petroleum and Gas Commission is under chapter three of the Petroleum Act, 2012.

The policy-making body is mandated to participate in the upstream, midstream and downstream of oil and gas on behalf of the State.

Nilepet was incorporated in 2009 after the Comprehensive Peace Agreement of 2005.

In 2011, it took over from the state-owned oil company of Sudan, Sudapet, upon the independence of South Sudan.

Nilepet is active across the petroleum value chain, with a stake in all three operating companies, and a significant presence in the midstream and downstream sectors.

According to experts, Nilepet controls the supply of domestic and international consumption of fuel.

It on behalf of the government promote the sustainability and growth of the national oil industry, safeguard the national oil interest and guarantee higher returns for the nation.

On its website, Nilepet says it builds “a balanced portfolio of assets, maintaining financial flexibility, and maximizing earnings and cash flows by controlling costs.”

The national oil company has majority stakes in six joint ventures, with three currently active; Nile Drilling and Services Co, Nile Delta, in partnership with Nigeria’s Niger Delta E&P, and SIPET Engineering and Consultancy Services which provides project consultancy and power plant operation and maintenance services.

While South Sudan is a producer of crude oil, expert say it lacks capacity and infrastructure to refine the crude into the fuel its population relies on.

As a result, Nilepet is deeply integrated into global oil supply chains, including international refineries and commodity traders, without which it would be unable to raise revenues.

In 2018, a Global Witness investigation accused Nilepet of having “fallen under the direct control of President Salva Kiir and his inner circle and is being used to funnel millions in oil revenues to the country’s brutal security services and ethnic militias, with limited oversight and accountability.”

Three weeks ago, President Salva Kiir announced that the government will be exploring ways and means to speedily rectify the worsening economic situation so that at the very least, it can pay monthly salaries on time.