(2 minutes story)
· The Republic of Equatorial Guinea decided to support oil &
gas services companies in the wake of the oil price drop caused by
the coronavirus pandemic by the waiving of fees for services
companies
· This will help oil companies to weather the drastic price
fall and job losses
The Republic of Equatorial Guinea decided to support oil & gas
services companies in the wake of the oil price drop caused by the
coronavirus pandemic by the waiving of fees for services companies.
This is the first action taken by the government to help the oil
companies since the prices of oil have come down. Oil price currently
is at around US$20 a barrel, the lowest level since 1991.
The Ministry of Mines and Hydrocarbons waiver of fees for services
companies for a duration of three months. This will help oil
companies to weather the drastic price fall and job losses. While it
is important to let market forces determine the future, the government
feels that it has a role to play in stimulating the market and
creating an environment for these companies to stay strong, continue
investing and create employment opportunities.
The government is inviting multinational companies to invest in the
hydrocarbon sector along with local private companies. The new
incentives would enable the local services industry to adapt to new
market dynamics. The present measure is the first lot of actions being
implemented by the government and will be followed by similar sops to
bring relief to its oil & gas sector, which is reeling under pressure
on account of declining oil prices.
