IMPACTS OF PANDEMIC CRISIS COVID-19 IN OIL AND GAS PROJECTS IN AFRICA
The public health issues lived worldwide due to the pandemic crisis caused by the new coronavirus COVID-19 will have many repercussions in the world economy, namely in the oil and gas market. This impact will be particularly felt in the African continent where many countries have their annual budgets largely dependent on the revenues streaming from the oil and gas market.
Among the numerous consequences, several projects that were lined up have been postponed, causing the economic crisis to be aggravated. Moreover, oil prices around the world have dropped to under thirty united states dollars per barrel, and experts and market analysts foresee a recovery to just over thirty united states dollars.
Considering that most African oil and gas-producing countries have registered their oil assets in their balance sheets at over fifty united states dollars per barrel – Angola considered fifty five, and Nigeria fifty seven -, one can foresee hard times ahead.
On March 27, The chairman for the African Energy Chamber (Câmara de Energia Africana) Mr. Nj Auyk has alerted for the severity of low oil prices to the African market, stating that thousands of African and expat workers may be dismissed from their works as a consequence to the cancellation of oil and gas projects.