Oil is Equatorial Guinea’s most important export product especially with the discovery in 1995 of off shore oil in the Gulf of Guinea.
After a significant decrease in production in the oil rich nation in 2017, the government is seeking to address the decade-long decline in production. According to statistics, production stood at 128.600 Barrel/Day in December 2017 which decreased from the previous 160.100 Barrel/Day reported in Dec 2016.
Equatorial Guinea’s oil reserves were fixed at 1.28 billion in 2005, while oil production was stipulated at 420,000 barrels per day, where crude oil accounted for over 90% that same year.
Government rolls out measures to improve oil production
In order to revive its ailing oil sector, Equatorial Guinea’s energy industry secured $2.4 billion of new investment from US firms. Reports indicate that such an investment will be used for drilling, backfilling and also increase production, which has experienced significant decline in recent years.
ExxonMobil, Kosmos Energy, Marathon Oil Corp and Noble Energy have been cited as potential investors while the government is still in talks with LNG off-takers as Shell’s exclusive arrangement draws to a close in 2020. According to recent information, no negotiations are ongoing with Shell because they declined and did not indicate any interest to invest.
Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Obiang Lima, revealed that thanks to the investment, 11 oil wells will be drilled by 2019. He went further to indicate that the government plans to have a large amount of foreign direct investment in country, hence might refuse to extend existing licenses for oil companies unless they invest a minimum of $2 billion in the country.
AFRIC Editorial Article.