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Chamber urges OPEC, other suppliers to end oil price war

Chamber urges OPEC, other suppliers to end oil price war

As Organisation of Petroleum Exporting Countries (OPEC) and other non-OPEC oil producing countries (OPEC+) meet today in Vienna, Austria, African Energy Chamber, a chamber of networks, transactions and partnerships in Africa’s growing energy industries, has urged them to reach a deal and end the current oil prices war. Daily Trust reports that 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.
Increased supply came on top of a demand shock due to the COVID-19 pandemic, and sent oil prices at a historic low averaging $20. But ahead of the meeting, the African Energy Chamber has urged OPEC and OPEC+ to work together and find a deal to restore market stability. The chamber noted that the situation in Africa’s oil economies remained dire and the continent needed a deal to ensure the continuity and survival of its industry, according to Energy Chamber.
According to the group, following the crash in oil prices, key projects awaiting FID such as ExxonMobil’s Rovuma LNG have been delayed, it said in a report yesterday.
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.
More importantly, several drilling contracts have been terminated or cancelled, or simply won’t be happening. The AEC Executive Chairman, Nj Ayuk stated: “This is the case across the continent, especially for much-awaiting drilling operations like in The Gambia or Angola. On top of that, thousands of jobs could be lost in the African energy sector if the situation was to linger. “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.” declared Nj Ayuk, Executive Chairman at the African Energy Chamber. “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.” Ayuk added. While the Chamber truly believes that market forces have to work and shape the future of the industry, the situation has become too dire in Africa for the sector and governments to stay idle. Related

Source: https://www.dailytrust.com.ng/chamber-urges-opec-other-suppliers-to-end-oil-price-war.html