…as Ed Ubong underscores the need in strengthening regional collaboration to attract upstream investors.
On the back of industry and fiscal reform, Equatorial Guinea is officially open for business and investment, said the country’s Minister of Mines and Hydrocarbons, Antonio Oburu Ondo.
Speaking in a virtual address ahead of an Invest in Equatorial Guinea Energies Country Spotlight – sponsored by EG LNG and Marathon Oil Corporation – at African Energy Week (AEW) 2024: Invest in African Energies, Minister Ondo said that the country offers a wealth of opportunity across the oil and gas sector and it is inviting foreign companies to expand their footprint across the country.
“Equatorial Guinea has embarked on a strategy to create a more enabling environment to encourage more growth in the energy sector. We concluded the review of the current Hydrocarbons Code, recruiting a top international consultant for optimization purposes,” he stated.
Oscar Vicente Garcia Berniko, General Manager of State-Owned Enterprises in Equatorial Guinea, shared further insight into the Hydrocarbons Code. He said that “new terms provide incentives for companies to proceed with their investments. We downgraded the corporate income tax and withholding tax. But we need to go beyond. So, we have a policy of optimizing incentives with our partners. If companies face challenges, they can speak to us and we will respond.”
Adding to these remarks, Alfredo Jones, Managing Director, Alduco Engineering, said that “The government has also simplified the process of investing for companies. There are also laws protecting foreign investment, and recently, these laws have been reinforced.”
Rich in both oil and gas and strategically located along the west coast of Africa, Equatorial Guinea has seen renewed interest from global majors in its offshore acreage. In June, Chevron signed two Production Sharing Contracts (PSCs) for offshore blocks EG-06 and EG-11, representing a total investment of $2 billion.
Scott Childres, Country Manager Equatorial Guinea, Chevron, believes that this milestone is largely due to efforts by the state to create conditions that make exploration happen. He said, “Establishing a competitive environment is very essential. This is a continuous effort on the part of the state. We have been working closely with the state to discover the pathways for [increasing exploration.]”
Further attracting new E&P players, the Ministry of Mines and Hydrocarbons signed two PSCs last year with Africa Oil Corp. (Block EG-18 and EG-31). Craig Knight, the company’s COO, said that “the government has been very flexible in these discussions. A lot of us are looking at how we can find gas to provide fuel for the next 15-20 years to come. There is a great opportunity in terms of the rocks and now we are looking at how we unlock these opportunities.”
The Ministry also signed a PSC with Panoro Energy for EG-01. Panoro is currently leading a seismic reprocessing program in Block EG-01, as well as a two-well infill drilling campaign in Block EG-06, the first of which came onstream this September. John Hamilton, CEO of Panoro Energy, stated that “We look at a country which still has so much exploration to do and still has world-class fields. Looking at Alba and Aseng, these are world-class fields. In the shallow water, you just know that there is a lot more to be found.”
For the country’s national oil company, GEPetrol, focus is on collaboration and strengthening its role as an operator. GEPetrol’s Operations Director, Manuel Ndong Edo, said that “We have been collaborating more closely with our partners. GEPetrol is more than a silent partner. We have seen good results so far with more collaboration and more communication with our partners.”
The country already represents a major producing market with ambitions to increase production and solidify its position as a regional hub. Julien Vuillemet, General Manager, Equatorial Guinea at Trident Energy, explained that “We have one upstream well that is producing and another which will come online in ten days’ time. There is still a lot of potential that can be recovered through a pragmatic approach in mature fields.”
These developments offer new opportunities for service companies. Pablo Memba Etuba, Director General of Grupo Memba Ltd (GML), said that “as a private-owned Equatorial Guinean company, there are a lot of opportunities on the services side. The Local Content Law gives us an advantage to be able to work in the country and gain access to contracts first.”
The country has also been strengthening cooperation with regional neighbors to enhance capacity at its Punta Europa LNG Terminal on Bioko Island. Equatorial Guinea and Nigeria signed a regional gas supply deal in August 2024 to process Nigerian gas at Equatorial Guinea’s Punta Europa LNG processing facilities, ushering in a new era of West African gas trade, energy security and regional cooperation.
Ed Ubong, Coordinating Director of Nigeria’s Decade of Gas, said that “We believe that Equatorial Guinea is a critical partner. It is exciting to see this level of collaboration in Africa. The real focus is on creating inter-connected demand, this creates incentives for upstream investors to put the money in.”