The double crisis of the COVID-19 pandemic and the collapse in oil prices is taking a toll on African economies and the African energy industry. 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. Bouncing back from this historic crisis will require strict and bold government action.
The impacts of the current crisis are wide and affecting both Africa’s most promising exploration prospects, but also its multibillion- dollar landmark projects. While the immediate impact on the continent’s biggest oil & gas project is already being felt, a much bigger one will result from the deferral or cancelling of drilling plans. Across oil & gas basins, drilling projects are being put back on the shelves or terminated.
“Our common sense 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. 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.” -NJ AYUK, EXECUTIVE CHAIRMAN OF THE AFRICAN ENERGY CHAMBER