Oil and Gas: how the sector will recover post COVID-19
As the African energy sector faces the impact of COVID-19 and the oil price collapse, we look at the African Energy Chamber’s ‘Call to Action’ for the sector.
Following the outbreak of COVID-19 and the collapse in oil prices, African economies and the energy sector is facing increased challenges within the region.
“An unstable and precarious oil prices environment has resulted in substantial cuts in state budgets and public spending, in losses of contracts and hundreds of thousands of jobs put at risk,” commented the African Energy Chamber.
In order to bounce back from this crisis, the African Energy Chamber highlights that a strict and bold government action will need to take place. As a result the African Energy Chamber has released its ‘Call to Action’ detailing the 10 measures for a commonsense energy agenda for Africa.
“Our commonsense approach advocates for measures that will support the continuity of business operations and future sector growth. The oil and gas industry will only work for Africans when we set fair policies and treat oil and gas companies as partners who drive our progress,” declared NJ Ayuk, Executive Chairman at the African Energy Chamber.
“As the voice of the energy industry, we will continue to work with the public and the private sector and other stakeholders to revitalize the African oil and sector by putting Africans back to work,” added Ayuk.
The impact in the oil and gas sector
Not only are the current crises affecting Africa’s most promising exploration prospects, it is also affecting its landmark projects too such as BP, Kosmos Energy’s Greater Tortue Ahmeyim (GTA), ExxonMobil and Eni.
Oil projects that are also being impacted by these challenges include the Pecan Field development, Aker Energy’s letter of intent to charter, operate and maintain the Pecan FPSO, Woodside ENergy’s Sangomar Offshore Oil Project and Shell’s Bonga South West Aparo.
“Delays in the execution or sanctioning of these projects will severely impact African economies whose local goods and services were set to benefit from billions of dollars of subcontracting opportunities,” commented the African Energy Chamber.
Since the outbreak of COVID-19 began the African Energy Chamber has led the communication between the public and the private sector and has been advocating for measures to support the industry and its jobs.
“The African Energy Chamber will continue to call on governments, regulators and private companies to work together on finding the right solutions that work for their country and operations,” concludes the African Energy Chamber.
For more information on business topics in Africa, please take a look at the latest edition of Business Chief EMEA.
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