PIAC Discloses That COVID-19 Affected Upstream Oil, Gas Sector In 2020

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The Public Interest and Accountability Committee (PIAC) says the episode of the COVID-19 pandemic and its related stuns on the economy and significant industry entertainers demonstrated testing to upstream oil and gas activities in 2020 contrasted and 2019.

PIAC said the episode and impact of the COVID-19 pandemic got a few vulnerabilities the worldwide upstream petrol industry tasks during the period with an ensuing impact on the Ghanaian oil industry.

The 2020 PIAC report, which covers the period January to December, said: “New agreements and tasks reserved to be executed were ended.”

“Creation levels at the different oil-delivering fields are likewise cut in the wake of the pandemic and eventually, expected government incomes were influenced.”

While the government, in its 2020 Budget Statement and Economic Policy, projected an unrefined petroleum benchmark cost of US$62.6 per barrel; in any case, it demonstrated that the flare-up of the pandemic in January saw oil costs plunged to as low as US$20 per barrel.

It said in spite of the fact that costs got in the year, the expected income inflow was essentially diminished.

Therefore, the report said the Ghana Stabilization Fund (GSF) must be covered at US$100 million from an underlying total of US$455.53 million, and the abundance moved to the Contingency Fund to support the shortage in extended incomes from oil, following the Petroleum Revenue Management Act 2015.

The PIAC report said the petrol business’ presentation was shaky for the greater part of 2020 as the main half saw Brent oil value tumble from a normal of $63.5 per barrel in January to a normal of $32.01 per barrel by March.

“The product further saw a breakdown to a memorable lower part of $18.38 per barrel in April before getting marginally in May to $29.38 per barrel.”

The report demonstrated that a blend of COVID-19 worldwide regulation limitations and the Organization of the Petroleum Exporting Countries (OPEC) intercession measures intended to support the market through convenient creation cuts, brought about oil costs ascending to $40.27 per barrel in June 2020 – 33% below 2019 normal for a similar period.

As of December 2020, oil value dramatically increased in worth to around $50 per barrel, nearer to the pre-pandemic upsides of above $60 per barrel.

It said even before the recuperation of oil costs in the second 50% of 2020, the government set up measures to support the country’s endeavors at dealing with its hydrocarbon assets.

“The Petroleum Commission had toward the start of the year endorsed work projects and financial plans adding up to about US$324 million for Exploration and Production (E&P) organizations in the exploratory and evaluation arranges,” the report said.

“The organizations were expected to attempt different boring efforts, obtaining and understanding of seismic, topographical and geophysical information, well arranging, acquirement delicate and activation before the COVID-19 worldwide pandemic,” it said.

The report recognized that project execution, arranging, hazard the executives just as related preliminary exercises had slowed down, with suggestions for cost and time invades.

The PIAC report expressed, among different cases that, in March 2020, Aker Energy delayed its improvement exercises in the Pecan Field project, esteemed at US$4.4 billion and the organization was planned to present a reexamined Plan of Development (PoD) and settle on a last venture choice on the Field.

“Be that as it may, because of the impact of the COVID-19 pandemic on the oil and gas industry worldwide, Aker Energy mentioned for a suspension and deferment of the Pecan Field improvement exercises.”

It said: “there was additionally a freeze or wiping out of basic activities and upkeep chips away at creation offices booked for the year, due incompletely to the skeletal labor force worked by most organizations in consistence with endorsed COVID-19 conventions.”

Despite the COVID-19 circumstance, the report conceded that there was supported creation in the country’s three seaward delivering Fields.

It clarified that for the period under audit, a sum of 66.93 million barrels of oil was created of which the Jubilee Field delivered 30.42 million barrels, TEN 17.80 million barrels, and OCTP (SGN) 18.70 million barrels.