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The African Energy Chamber has urged OPEC and OPEC+ to work together and find a deal to restore market stability.
The situation in Africa’s oil economies is dire and the continent needs a deal to ensure the continuity and survival of its industry.
Following the crash in oil prices, key projects awaiting FID such as ExxonMobil’s Rovuma LNG have been delayed. Other projects already on the move, such as Senegal’s Greater Tortue Ahmeyim, are seeing an extension of their timeline to provide for capex cuts.
Several drilling contracts have been terminated or cancelled, or simply wont be happening. This is the case across the continent, especially for much-awaiting drilling operations like in The Gambia or Angola. As a result, thousands of jobs could be lost in the African energy sector if the situation was to linger.
In a press statement to NewsWireNGR, Nj Ayuk, Executive Chairman at the African Energy Chamber, said: “The twin crisis of the COVID-19 country lockdowns and oil prices war has had a devastating effect for Africa and its producing countries and companies,”
“Let’s be clear, this current prices war will have no winner. We urge OPEC and OPEC+ Members, especially African producers, to support all efforts to reach a deal and bring the stability we need to see the end of the tunnel,” he added.
OPEC and OPEC+ are set to meet in Vienna on Thursday, April 9th, to try to reach a deal on ending the current oil prices war.
Since OPEC failed to reach a deal on maintaining production cuts last March, major oil producers have been ramping up production to maintain and increase their market share.
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