Oil and Gas: how the sector will recover post COVID-19

By Georgia Wilson
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...

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.

To download the African Energy Chambers ‘Call the Action’ agenda, click here!

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.

SEE ALSO:

For more information on business topics in Africa, please take a look at the latest edition of Business Chief EMEA.

Follow Business Chief on LinkedIn and Twitter.

Share

Featured Articles

Top 10 startups to watch in 2023: Middle East & North Africa

From foodtech to fintech, video streaming to logistics, the companies on our top 10 MENA startups' list continue to innovate, grow and attract funding

Top 10 most innovative telecom operators in the Middle East

With Dubai-based Telecoms World Middle East in full swing, we chart the most innovative telcos from the region – and look at how they are transforming

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Human Capital

Top 10 female HR execs leading Saudi’s workplace transition

Leadership & Strategy

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance