Travel bans reducing oil productivity, says African Energy Chamber

The African Energy Chamber has said that the continuation of travel restrictions between Africa and Europe is heavily impacting the oil and gas industry’s recovery efforts.

The oil and gas industry majorly relies on global value-chains and the movement of people, goods, and services between foreign and local contractors.

According to the African Energy Chamber, the ongoing travel bans are preventing a lot of projects to proceed further.

Due to current travel restrictions, major international oil companies such as Total, BP, ExxonMobil, Chevron, Shell, Eni, or Equinor, as well as independent firms such as Kosmos Energy, BW Energy, or Tullow Oil, are unable to operate fully and safely.

These restrictions will result in direct impact on the operations of the major international services and engineering, procurement, construction (EPC) companies supposed to work on key projects.

The EPC companies under this category include Saipem, Schlumberger, TechnipFMC, Halliburton and many others.

African Energy Chamber executive chairman Nj Ayuk said: “We cannot base our recovery narrative and hopes on the oil and gas sector and at the same time forbid the movement and travel of the workers and employees supposed to make that recovery happen.

“We are urgently calling for pragmatism and the adoption of realistic measures that put workers’ safety and economic recovery at the centre of public and travel policies priorities.”

From West to Southern Africa, landmark energy projects that are valued at billions of dollars have been postponed because of the ongoing Covid-19 crisis.