Equatorial Guinea Signs Oil Deal with Chevron and GEPetrol
The Ministry of Mines and Hydrocarbons of Equatorial Guinea has announced the signing of production sharing contracts (PSC) with multinational energy corporation and the state-owned oil company GEPetrol and Chevron.
The new PSCs outline clear development plans for the assets, including provisions on minimum investments, exploration programs, sustainable development and state benefits. The contracts also signify Chevron and GEPetrol’s intent to launch a new exploration and production campaign at these blocks, which were previously held by ExxonMobil.
Blocks EG-06 and EG-11, situated near the producing Block B, which houses the Zafiro field, are considered highly prospective. Block EG-11 covers approximately 1,242 km², while Block EG-06 features an oil discovery at the Acestruz-1 well, drilled in 2017.
This strategic investment by Chevron and GEPetrol is poised to play a crucial role in reversing the decline in oil production and bolstering the exploration and production sector in Equatorial Guinea.
Antonio Uburu Ondo, Equatorial Guinea’s Minister of Mines and Hydrocarbons, said: “The signing of these production sharing contracts between Chevron, GEPetrol, and the Ministry marks a significant milestone in our ongoing efforts to revitalize the upstream sector.
“This partnership is a testament to Equatorial Guinea’s commitment to enhancing exploration and boosting offshore production. We believe that these investments will bring about a resurgence in our oil and gas industry, contributing significantly to our national economy.”
Chevron already has a strong presence in Equatorial Guinea, with stakes in three fields in the country These include the Aseng field, the Alen field and the Yolanda field – located in Block 1 The company has also been making strides towards developing the country’s Gas Mega Hub (GMH) project, an initiative that aims to position the country as a central processing hub for stranded gas assets in both domestic and regional markets.
Last year, Chevron – through its affiliate in Equatorial Guinea Noble Energy – and Marathon Oil signed a Heads of Agreement for the next two phases of the GMH. Phase II includes the processing gas from the Alba field while Phase III processes gas from the Aseng field. The signing of the PSCs for Blocks EG-06 and EG-11 add to the company’s portfolio in the country and aim to bolster production in undeveloped assets.
“We are confident that the development of Blocks EG-06 and EG-11 will not only enhance oil production but also support our energy security efforts. The Ministry remains committed to creating an attractive investment climate and fostering partnerships that drive sustainable growth and prosperity in Equatorial Guinea,” Ondo added.
