The loss of revenue recorded by the Ghanaian oil sector due to the Covid-19 is estimated at 1.04 billion dollars. GDP is expected to decrease from 2.6% to 6.8%. Exploration is the branch most affected, with the suspension of numerous campaigns such as on the Pecan field.
In a virtual conference organized by the African Center for Energy Policy (ACEP), the director general of the Ghanaian petroleum regulator, Egbert Faibille Jr, revealed that the coronavirus has already caused a shortfall of 1.04 billion $ for the country.
The shock suffered is notably linked to the low price per barrel, sluggish demand, as well as to the slowdown in activity upstream.
According to his explanations, the preliminary analysis of the impact on the economy also shows an expected drop in the GDP growth rate from 2.6 to 6.8% by the end of the year. Although oil production is underway, production and revenue forecasts for the year have been significantly affected, largely due to the postponement of the Pecan field development campaign.
If the reduction in exploratory activity has, as elsewhere in the world, resulted in the loss of many jobs, the regulator suggested that companies invest massively to allow staff to work remotely, in order to keep the industry in activity .
In another register, Faibille indicated that the last cycle of licenses had attracted a considerable number of investors who visited the data room. They wait for negotiation periods to acquire blocks. But the procedure is on hold due to the pandemic.
“The pandemic risks delaying the country’s second cycle of licensing, because the government is prioritizing the management of the national impact of the virus and is waiting for investment conditions to improve,” he said. he explained.
Source: Agence Ecofin