Why oil market uncertainties, COVID-19 will stall projects

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“If you look at this way; we have coronavirus that collapsed the world economy; we have lower prices both of gas and crude; is it wise for a country to bring up an auction for its resources at this time?” OilPrice OPEC COVID19 GlobalEconomy

Indeed, while the newly sanctioned train seven of the Nigerian LNG is expected to commence with construction work towards third quarter of 2020, Fawibe noted that the current financial crisis in the sector and across the world could delay the project.

Auwalu, in a chat with The Guardian, noted that the timing is not right, considering the raging pandemic and equally added that the oil industry is maturing. For Fawibe, “The problem we face in the industry is not limited to a particularly country, it is global, especially with operation being reviewed in various countries.

Fawibe decry the revenue shortfall from the sector and noted that development would leave the country with financial crisis as well as scarcity of foreign exchange, which could post grave challenge after the pandemic.

 

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