The African Energy Chamber warns of the consequences of corona and the volatility of world oil prices


Johannesburg – ASA:

Posted on: Tuesday, 7 July 2020 – 11:04 AM | Last update: Tuesday, July 7 2020 – 11:04 am

The African Energy Chamber has warned of the negative repercussions of the double crisis resulting from the outbreak of the Corona virus epidemic (Covid-19) in the countries of the world and the fluctuation of oil prices on the economies of African countries and the energy industry in the continent.

The Chamber said – in a press statement issued today, Tuesday – that the instability of the oil price environment has led to significant declines in the budgets of countries and reduced the volume of their public spending; Commercial contracts and hundreds of thousands of job opportunities are also subject to the risk of collapse, noting that recovering from this unprecedented global crisis will require strict and bold government measures.

She added that “the current crisis is widespread and will affect both prospects for promising oil exploration in Africa, as well as its major projects worth billions of dollars, such as the liquefied natural gas project located on the maritime border between Senegal and Mauritania, which is run by BP and the US Cosmos Energy, The Rufoma LNG project in Mozambique, which is run by global Exxon Mobil and Eni, is worth $ 30 billion. ”

The Chamber continued, “The oil projects were also not spared the repercussions of the crisis. In Ghana, the development work in the Pecan Field Project for oil exploration has stopped, and the Sangamar oil exploration project in Senegal, which is the first oil project in the country under the supervision of Woodside Energy International, will face delays.” In financing. ”

It called on the African Energy Chamber to take measures to support the energy industry and the jobs that fall under its banner, and the Chamber considers that the time has come to take urgent measures to protect the future of the oil and energy industry in Africa, pledging not to let African companies and their industries collapse because of fear of losing jobs and investments that would maintain African economies for decades to come.

It indicated that it called for several urgent measures to save an industry, among them; Enhancing exploration work and ensuring the resumption of drilling, exploration and tax exemption activities for oil services companies, reforming financial systems, strengthening banking and financial support, developing regional content, approving incentives for infrastructure projects, and other bold measures to eliminate fuel subsidies.

For his part, CEO of the African Energy Chamber Nie Ji Ayuk said: “The oil and gas industry will benefit the Africans when we set fair policies and treat oil and gas companies as partners in the journey of progress and development.”

“As the voice of the energy industry on the continent, we intend to continue to work with the public and private sectors and other stakeholders to revitalize the oil industry and get Africans back into business,” he added.


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