Despite oil downturn from COVID-19, African Energy Chamber says there’s hope for the continent’s oil

By Tata Mbunwe

The African Energy Chamber has expressed optimism about the future of Africa’s oil despite the fall in African oil revenue due to the COVID-19 pandemic.

“Oil and gas activities have undoubtedly taken a hit in 2020, but the outlook for African projects, fiscal regimes, and investment remains optimistic. Africa’s energy potential is enormous, and remains largely untapped. The world still needs oil and gas. As we look to the global recovery, we see significant opportunities for new development, which are detailed in-depth in our 2021 outlook,” said NJ Ayuk, Executive Chairman of the African Energy Chamber.

The African oil and gas sector has had to grapple with many challenges this year, especially with a fall in capital expenditure on African oil and gas.

At least $90 billion was to be spent on the sector in 2020/21, but the pandemic had forced many companies to cut costs and major projects are delayed, dropping expenditure on the oil and gas sector to $60 billion.

Before the outbreak of COVID-19, the industry was already grappling with strict fiscal regimes, chronic regulatory challenges, competition from the shale industry, and a global transition to greener production practices.

“The global pandemic came at a particularly difficult moment,” the Energy Chamber says.

Although NJ Ayuk, a Cameroonian heads the African Energy Chamber, Cameroonian oil has equally been affected by the downturn in oil turnover.

“We know the Cameroon energy sector can make an incredible rebound and that the opportunities for investment and growth will be exponential but the energy sector must first be reshaped for a post COVID-19 comeback,” explained NJ Ayuk, Executive Chairman of African Energy Chamber.

In its second annual Africa Energy Outlook report, the African Energy Chamber offers a look into what the future holds for oil and gas development across the continent.

Building on the success of last year’s inaugural edition, the 2021 Africa Energy Outlook is a must-read for any oil and gas stakeholder active in Africa, according to a release by the Chamber.

“When we began work on this year’s report, we were determined to expand and improve in line with our mission to support and promote African energy industry players at the local, regional, and global levels. The advent of COVID-19 brought on challenges none of us had foreseen, making the 2021 outlook an invaluable resource for existing players and potential investors,” said Mickael Vogel, Director of Strategy, African Energy Chamber.

The report also identifies challenges weighing on the industry even before the pandemic struck, and more importantly, offers workable solutions that could steer it back on track.

(C) Mimi Mefo Info