WorldWide Drilling Resource

42 NOVEMBER 2014 WorldWide Drilling Resource ® Ebola Virus Could Hurt West Africa’s Oil and Gas Industry Adapted from Information by GlobalData According to research and consulting firm GlobalData, the Ebola virus outbreak in West Africa has led oil and gas explo- ration and production programs to ques- tion whether the risk is worth the reward. Unfortunately, the failure to contain the virus could eventually lead to an econom- ic decline and deprive the region of mil- lions of dollars a day. John Sisa, GlobalData’s lead ana- lyst covering upstream oil and gas in the sub-Saharan region said, “Nigeria is the only country in the region with sufficient resources to contain the outbreak, but there is still a risk of uncontrolled spread of Ebola. As the eighth largest crude oil producer in the world, there is a substan- tial threat of supply disruption should the virus spread further in the country.” Most of Nigeria’s oil production comes from offshore areas, however, the por- tion which comes from onshore areas is located in high-risk Ebola zones. Although most of the dri l l ing in Guinea, Sierra Leone, and Liberia occurs offshore, nearly all of the oil workers are based in onshore stations. Local offshore oil workers who return to their onshore homes in dangerous, infected zones could potentially bring the virus to drill- ships and platforms when reporting for duty. According to the Centers for Disease Control and Prevention, the 2014 Ebola outbreak is the largest in history. It is affecting several countries in West Africa as indicated by this distribution map. If the outbreak spreads further, it could also disrupt Nigerian onshore oil production, equivalent to $40 million per day. The virus has overwhelmed the health care systems of Guinea, Sierra Leone, and Liberia, which may lead oper- ators to pull their personnel out of the area and halt activities until the Ebola situation is controlled.This could have devastating economic repercussions on the countries affected by this deadly virus. While the impact of Ebola has only delayed exploration activities so far, the worst-case scenario could see the virus spread to East Africa, endangering major operations in Kenya, Mozambique, Tanzania, and Uganda. WWDR is looking forward to a great new year ! Include your ad in our special January issue. Deadlines: Space Reservation - November 21 st Display & Classified Ad Copy - December 1 st