Resolution of Business Conflict Article Analysis

Conflict Management

South Sudan rebels compel oil firms to leave

South Sudan rebels has directed that the oil firms still in operation in the country to immediately shut down as an urgent matter due to conflict. The opposition, Sudan People’s Liberation Movement and allied groups led by the former Vice president RiekMachar directed that the firms are supposed to immediately evacuate the Upper Nile region (Aggrey, 2015).

A statement issued by the opposition’s spokesman, James GatdekDak read, “In response to the government’s full scale offensive on our positions in the three states of greater Upper Nile region, we have decided to take control of the oilfields and…(prevent) SalvaKiir from using the oil revenues to perpetuate the war.”

Therefore, the leadership of Sudan People’s Liberation asked all the oil companies operating in the Upper Nile to stop every operation of theirs and undertake an immediate evacuation of their staff.  The rebels asked them to carry out the process of shutting down in a manner safe not to damage the oil facilities and result in environmental degradation (Aggrey, 2015, p. 19). An earlier directive had resulted in shutting down and employees’ evacuation by companies like Petroliam NasionalBhd, India’s Oil $ Natural Gas Corp., China National Petroleum Corp. and other oil companies which were operating in the neighboring Unity  State.

The overwhelming oil business venture in the country which seceded from the Sudan in July 2011 results into the production of over 160,000 barrels daily from the Upper Nile. This generates approximately $15 million in revenue for the under attack government of SalvaKiir. This has revoked the rebels as they think the Kiir’s government is using the resources from the oil mines in perpetrating war between the countries.

The General and Specific costs of the conflict.

The cost of conflict is the technique in which there is an attempt to measure the price of conflict on human race. This basically encompasses the examination of the cost as a result of conflict not only in relation to the economic, casualties and deaths but also the strategic, environmental, social and developmental costs of conflict.

The general cost of conflict may be so diverse but with respect to the South Sudan oil conflict a few would be derived: First, is the as aspect of an environment which hostile for business activities. In the presence of such a rebellious conflict of two political fonts on some business venture pure presents unfriendly business environment (Pipe, 2012). This is because such a system of wrangles do not foster resolutions that are geared towards addressing the sources of conflict resulting to breakdown in relationships between investors and the country or the relationship of the country with other countries in terms of business undertakings. Such a process of conflict and deteriorations in the intergovernmental relations have no design to get individuals back to an optimal state of productivity. Secondly, there is a breakdown of trust and inability in fostering a neutral ground of future business undertakings. Investors perceived the country as an environment for business with unforeseen risks unhealthy for business undertaking. Lastly, the country experiences a state of economic doldrums. As the course of business falls due to unhealthy environment there is a state of economic stagnation in the country (Pipe, 2012).

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