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Business - October 12, 2020

Oil contracts cancelled over Coronavirus

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Egbert Faibille Jnr., CEO of the National Petroleum Commission, revealed that the coronavirus has caused the cancellation of some oil contracts.

Egbert Faibille also pointed out that the impact of the cancellation of contracts caused by COVID-19 has affected local work in the oil and gas industry.

“Among the reduced workforce in this industry, the consequence of canceling the contract is that both expatriates and local personnel are fired. It is expected that more than 500 Ghanaian workers in this industry will lose their jobs due to the pandemic.””Local businesses have been hit hard by the pandemic. The industry outlook before COVID-19 has led to massive investments in infrastructure, personnel and technology in anticipation of participating in major projects.

‘Actually, Aker Energy, AGM, Eni, GOSCO and Springfield signed a total of 98 contracts from the fourth quarter of 2019 to the first quarter of 2020, with a total value of more than $389 million.

In his briefing on the oil situation to the Western Region House of Representatives, he said: “Cancel these contracts, such as the 5-year Maersk Drilling contract and related subcontracts. The contract will be terminated in June 2020 and will be given to local governments. The business brought catastrophic losses.” Department

 

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