Offshore staff
LONDON – Breakeven oil and gas prices for new projects in sub-Saharan Africa appear high risk in the current climate, according to GlobalData.
Conor Ward, and oil and gas analyst at the company, said the most capitally intensive project concerns the deepwater Mamba complex off Mozambique.
Even with ExxonMobil onboard, and efforts to reduce capex by around 20%, the project appears unlikely to secure a final investment decision this year, he added.
Other sub-Saharan projects already under construction with investment finalized will contractually have to go ahead, but could face disruption to their timescales, Ward suggested.
The region as a whole, and in particular Nigeria where the regulator has just asked for restrictions on the offshore workforce, will suffer reduced production and investment in the near term compounded by declines in producing fields.
He concluded: “The outlook for oil and gas projects for Sub-Saharan Africa in 2020 is bleak as major producing countries in the region (Nigeria and Angola) suffer with production declines and the wave of east coast LNG projects facing deferral until 2021 or later.”
04/13/2020
