Equatorial Guinea is set to launch a licensing round in 2025 to boost its oil and gas exploration and production. This will attract investments and foster collaborations with local and international entities. Key developments include Chevron’s new PSCs and GEPetrol’s revitalization of the Zafiro field, reflecting a robust commitment to enhancing production capabilities.
Equatorial Guinea is poised to enhance its upstream oil and gas sector with a new licensing round scheduled for 2025, aimed at boosting exploration and production activities. As globally mature fields decline, Identifying new acreage has become imperative for the nation’s energy security and revenue generation. The successful execution of this round is anticipated to draw essential investments, introduce advanced technologies, and foster collaborations among international and local entities in Equatorial Guinea’s energy sector.
Under the strategic leadership of Minister of Mines and Hydrocarbons, Antonio Oburu Ondo, the country is actively engaging investors in its hydrocarbon resources. While specific technical details of the licensing round remain undisclosed, the initiative is expected to build upon previous successful ventures, reinforcing Equatorial Guinea’s status as a vital oil and gas producer in the African landscape.
“The importance of exploration cannot be overstated. New licensing rounds are the lifeblood of Africa’s upstream industry, ensuring that production levels remain strong and that new discoveries continue to fuel our economies. Equatorial Guinea’s commitment to advancing exploration is a testament to its strategic vision, and the AEC fully supports these efforts,” states Tomás Gerbasio, VP of Commercial and Strategic Engagement at the African Energy Chamber.
The previous licensing round, conducted in 2019, saw the offering of 27 blocks for exploration, attracting significant interest from the industry. The upcoming round may notably feature Block H and Block 02, which were previously managed by Atlas Oranto Petroleum and PanAtlantic Energy. This new initiative is accompanied by ongoing developments such as Trident Energy’s successful production from its C-45 infill well, enhancing output by over 5,000 barrels per day.
In June 2024, Chevron expanded its presence by signing new Production Sharing Contracts (PSCs) for blocks EG-06 and EG-11, reinforcing its commitment to existing fields like Alen, Aseng, and Yolanda. In collaboration with Marathon Oil, Chevron is also advancing the Gas Mega Hub initiative which aims to process gas from the Alba and Aseng fields.
Meanwhile, VAALCO Energy is preparing to lead the development of Block P following the finalization of a PSC. Additionally, national oil company GEPetrol is revitalizing its production capacity with a focus on the Zafiro field. After taking over operations from ExxonMobil, GEPetrol is implementing a phased development plan to enhance output from one of its largest oil fields offshore.
The first phase, commencing in early 2025, will reconnect previously producing wells to the Zafiro Producer. Subsequent phases will optimize production efficiency and pursue full redevelopment, thereby bolstering production capabilities. Furthermore, GEPetrol has engaged Petrofac to provide technical services under a five-year contract valued at $350 million, intending to support operations across various production environments.
In conclusion, Equatorial Guinea is strategically positioning itself for a successful licensing round in 2025 aimed at boosting exploration and production, essential for its energy security. This initiative reflects a commitment to attracting significant investments and collaborating with industry players. The proactive measures undertaken by Minister Antonio Oburu Ondo alongside ongoing operational advancements highlight the nation’s determination to enhance its role as a key producer in Africa’s oil and gas sector.
Original Source: www.worldoil.com
