APPO, take action – oil and gas year is not lost, AEC says

The African Energy Chamber (AEC), a chamber of networks, transactions, and partnerships at the forefront of Africa’s growing energy industries, has urged member countries of the African Petroleum Producers Organization (APPO) to take action and support the oil sector at its meeting this week.

The Chamber said on Monday that it pleaded with the APPO members to consider implementing its Commonsense Energy Agenda and Guidelines for the Movement and Safety of Oil Workers.

The first includes key measures for a short and medium-term recovery of the sector while the latter includes immediate actions and initiatives that could ensure that the year is not entirely lost for oil and gas operations in Africa.

According to the African Energy Chamber, swift action and safe movement of oil workers can ensure that oil and gas operations continue safely with minimized impact on exploration and production.

Also, the Chamber called on the APPO to take the necessary actions and measures to safeguard the interest of the industry, its investments, and its jobs.

As stated within the Chamber’s Commonsense Energy Agenda, an adjustment of work programs is a major step that producing countries should be taking immediately. This will give explorers and producers the space to breathe and plan for a strong recovery in 2021.

Nj Ayuk, executive chairman of the African Energy Chamber, said: “Unless African countries engage with operators and investors and let them readjust their work programs, the only solution left for companies will be to declare force majeure or suspend any activity on their block.

“Work programs adjustments is a major demand of the industry at the moment and key responsibilities need to be waived so exploratory and development drilling can only be deferred and not suspended or cancelled”.

This is the second time in the last few months that the Chamber urged some sort of association of oil-producing countries to reach a deal benefiting the oil industry.

Namely, in early April – ahead of the OPEC and OPEC+ meeting, the Chamber made a plead with those member countries as well. The AEC wanted an end of the oil price war which sent the oil price tumbling.

The meeting resulted in a record production cut attempting to save the oil industry. Earlier this month, member countries extended the cuts.