During economic uncertainty, oil and gas service companies welcome government measures
In what will surely be welcome relief during the current uncertain economic period for the African oil and gas industry, it has been announced that Equatorial Guinea’s Ministry of Mines and Hydrocarbons (MMH) will, for the next three months, waive fees charged to service companies operating in its territory.
In a bid to protect regional legislation, operators must comply with local content requirements throughout the three-month period and remain adaptive to current economic conditions, while continuing to work with the local services industry.
Outlining the new measures for companies operating in the country Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for Equatorial Guinea explained:
“We recognise that the oil sector continues to be the largest private sector employer in the country and want to give our local services companies the means to weather the storm and avoid any jobs being lost. While it is important to let market forces determine the future, the government does have a role to play in stimulating the market and creating an environment for these companies to stay strong, continue investing and create opportunities for our citizens”.
According to the African Energy Chamber (AEC) the policy announcement from the Ministry forms part of an industry dialogue designed to promote collaboration during these unique times for the African upstream. As it is initiated by the government of Equatorial Guinea it is seen as a progressive step with the potential to consider other measures to financially assist upstream operators and ongoing midstream projects.