Oil producer Equatorial Guinea has announced that it will abolish fees for oil and gas service companies operating within the country.
This is the first step the country has taken to support the oil and gas sector following the oil price crash caused by the Covid-19 outbreak.
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Equatorial Guinea is taking all necessary steps to support its service industry in order to explore other measures for upstream oil and gas operators, as well as ongoing projects currently underway.
Equatorial Guinea Minister of Mines and Hydrocarbons Gabriel Mbaga Obiang Lima said: “The Ministry of Mines and Hydrocarbons has unanimously decided to waive its fees from service companies for a period of three months.
“We recognise that the petroleum sector continues to be the largest private sector employer in the country and we want to empower our local service companies to weather the storm and avoid the loss of jobs.
“While it is important to let market forces determine the future, government has a role to play in stimulating the market and creating an environment for these companies to stay strong, continue to invest and create opportunities for our citizens.”
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By GlobalDataMeanwhile, the country has declared a state of alarm to facilitate the mobilisation of material and other economic resources needed to contain the spread of coronavirus.
The government has committed to contributing CFA5bn (approximately $8m) to the fund in order to mobilise sufficient material resources to prevent and eliminate the virus within a short time span.
