Ebola virus may disrupt West African oil and gas operations, says GlobalData analyst

GlobalData analyst John Sisa has said that the Ebola virus will likely affect the oil and gas exploration and production programmes in West African states.

West African exploration and production operations rely on expatriates who work and live in the region.

Sisa noted that oil firms may withdraw staff and stop operations until the Ebola situation is controlled in Guinea, Sierra Leone, Liberia and Nigeria.

Sisa said: “Nigeria is the only country in the region with sufficient resources to contain the outbreak, but there is still a risk of uncontrolled spread of Ebola.

“As the eighth-largest crude oil producer in the world, there is a substantial threat of supply disruption should the virus spread further in the country.

“Almost 80% of Nigeria’s total oil production comes from offshore areas, while the remaining portion comes from onshore areas considered high-risk Ebola zones.

“If the outbreak spreads further, it could potentially disrupt all Nigerian onshore oil production, equivalent to $40m per day.”

Sisa added that the virus has already affected the healthcare systems of Liberia, Sierra Leone and Guinea, who have partnered with private local and foreign companies to finance oil and gas exploration activities.

Sisa added: “Although most of the drilling in Guinea, Sierra Leone and Liberia occurs offshore in water depths ranging from 300m-4,500m, almost all oil workers are based in onshore stations, exposing them to the Ebola virus.

“Oil workers who are local nationals and returning to their onshore homes in dangerous, infected zones could bring the virus to the drillships and platforms when reporting for duty.”

Sisa said the Ebola virus, which has to date delayed exploration activities, may spread to East Africa, affecting operations in Kenya, Mozambique, Tanzania and Uganda.