Nation Loses Gh¢5.7b Oil Revenue To Covid-19

Ghana has lost about GH¢5.7 billion ($ 1.04 billion) in oil revenues this year as a result of the COVID-19 – The Chief Executive of the Petroleum Commission, Mr. Egbert Faibille Jnr.

The impact of the pandemic, he said, had necessitated the freezing of the work programs and a decision to restore the period lost as a result, saying: “Critical operations and maintenance work on production facilities scheduled for the year have either been stalled or canceled.” Safety measures “The skeletal workforce operated by many companies in the effort to adhere to safety measures and social distancing has exacerbated the situation,” he said.

He warned that the pandemic was likely to delay the country’s second licensing round as the government prioritizes managing the domestic impact of the virus and waits for investment conditions to improve.” Free Face Mask The shocks Speaking on the theme: “The Impact Of COVID-19 in the operations of upstream oil and gas companies in Africa and surviving strategies: the regulator’s perspectives,” Mr.
Work obligations & operations He said aside from the economy, impact on work obligations and operations for the industry players were grave saying “the ongoing or new projects across the country’s oil and gas value chain are likely to face numerous challenges in terms of project execution, planning, and risk management.

Egbert Faibille Jnr., who made this known at the opening session of a three-day virtual conference organized by the Africa Centre for Energy Policy (ACEP), said the industry had suffered significant shocks which did not only affect the economy but also impact on work obligations and operations.
Faibille said, indicated that the total estimated fiscal impact from a shortfall in petroleum receipts, shortfall import duties, the shortfall in other tax revenues, the cost of the preparedness plan, and the cost of Coronavirus Alleviation Programme accrued to ¢21.42 billion ($3.89 billion) representing 2.5 percent of revised GDP.

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