After contemplating the results of the COVID-19 world pandemic on oil costs and African economies, the Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea has signed a ministerial order granting oil and fuel firms a two-year extension on their exploration programmes.

The African Energy Chamber stated on Monday that the MMH would additionally present flexibility on the work programmes of manufacturing firms to make sure development and stability available in the market.

By permitting
for the deferral of some work applications, firms can readjust their
expenditures and undertaking’s execution accordingly, and plan for extra environment friendly
investments as markets proceed to get well.

Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, stated: “The MMH stays involved in regards to the resounding impression of the drop in oil costs, COVID-19 and its dramatic penalties on our hydrocarbons business. At a time of nice uncertainty, we have now an obligation to make daring, decisive, and pragmatic coverage choices to get the business transferring once more.

Our authorities is totally dedicated to safeguard our native oil and fuel business, its firms, and its workers.  The granting of those extensions has been deemed appropriate to create an enabling setting for worldwide and African firms to maintain investing in Equatorial Guinea and guarantee a fast restoration of our business”.

The MMH will even
proceed working with oil firms benefitting from such incentives to make
positive that the restoration of the nation’s oil sector is made on the again of native
content material promotion, elevated know-how transfers, and procurement of
extra native items and providers.

The Chamber added that individual emphasis can be placed on educating, coaching, and selling the native workforce to assist additional cut back operational prices for worldwide firms whereas maximising the creation of native worth and income.

New measures to assist landmark initiatives

proposals, in response to the African Energy Chamber, keep and assure
present investments into Equatorial Guinea, whereas empowering native firms
to help their overseas companions in safeguarding and rising their
operations within the nation.

Some of those
firms notably embody ExxonMobil, EGLNG, Marathon Oil, Atlas Petroleum,
Kosmos Energy, Noble Energy, Glencore, Royal Gate Energy, Gunvor, and Trident
Energy, amongst others.

These measures
are being rolled out as Equatorial Guinea implements a collection of landmark
initiatives throughout its upstream, midstream, and downstream industries.

The backfill
undertaking is already ongoing to pool provide from stranded fuel within the Gulf of
Guinea and exchange declining output from the Alba Field.

Meanwhile, the
ongoing Year of Investment has generated sturdy curiosity from varied present
and new gamers in Equatorial Guinea to construct and increase midstream and
downstream infrastructure and maximise native processing and transformation of
home crude oil and pure fuel.

Coupled with a friendlier enterprise setting and market-driven insurance policies permitting firms to function amidst present market situations, Equatorial Guinea is positioning itself for fast get well and laying the bases of sturdy financial development within the years to come back.

Benefit for American & African independents

In an announcement on Tuesday, NJ Ayuk, government chairman on the African Energy Chamber, stated: “Equatorial Guinea has adopted a market-driven perspective and method to the present business challenges, which we consider is a successful technique to make sure a fast restoration of our economies.

We strongly encourage neighbouring nations to proceed their efforts and work with native and worldwide firms to place the correct measures in place to help their very own industries”.

According to the Chamber’s announcement from Tuesday, American independents are significantly enthusiastic about these new measures.

Namely, Vaalco,
which holds a 31 per cent working curiosity in Block P, has now an opportunity to
correctly regroup…

Read more at Source link


Please enter your comment!
Please enter your name here