Equatorial Guinea, African Energy Chamber meet on energy developments amid COVID-19

The African Energy Chamber has held a bilateral discussion with the Ministry of Mines and Hydrocarbons of Equatorial Guinea, led by Gabriel Mbaga Obiang Lima, alongside the Director of Hydrocarbons, Robustiano Eyegue Ndong, and NJ Ayuk, the Executive Chairman of the AEC.

The chamber sought to understand the state of the hydrocarbon sector in the country and was briefed by Ndong on immediate and near-term plans by the ministry.

Equatorial Guinea has moved its ‘Year of Investment’ programme to 2021, with plans to add more investment opportunities and projects, while taking into consideration the challenges of COVID-19.

For instance, the country is continuing its mining drive-in with a strong focus on the mainland and expects to drive new mining programs in 2021.

The minister agreed with the AEC that COVID-19 “has been a great disruptor” to the energy sector and urged the Equatorial Guinean government to continue working with oil and gas operators to find ways to ensure operations continue.

Lima told the chamber that the rapid development of the Alen unitisation project operated by Noble Energy will be delayed until 2021.

When pressed on the rapid approval of Chevron acquisition of Noble Energy, the minister explained that the country was currently studying the transaction as it pertains to Equatorial Guinea and will respond in due course taking into consideration compliance with the laws and regulations of the country as well as binding legal instruments like the Production Sharing Contract.

On the Gas Mega Hub, the AEC was informed that Equatorial Guinea contracted UK-based firm Gas Strategies to continue working on a revised Gas Master Plan as the minister disclosed that it was an important step towards the country developing a timely, economic and equitable plan for to monetise gas, and with a clear vision towards having a gas mega hub anchored around Punta Europa.

According to Lima, exploration activity is ongoing in the country, with Kosmos Energy likely to proceed with a drilling campaign in 2022.

Furthermore, Trident Energy started a 4D seismic survey over its Block G assets, which contains the Ceiba and Okume fields offshore with the potential to drill three wells in 2021.

He added that the country was engaged in discussions with Venezuelan state company PDVSA on the upstream and the downstream sector.

Commenting on the developments, Ayuk said, “Equatorial Guinea is an important oil and gas player and continues to be a great partner in advancing the relationships with investors while promoting local content. The chamber welcomes this dialogue and we remain committed to more engagements with African energy leaders because this is vitally important to the private sector.

“The African Energy Chamber, supported by leading energy companies, is confident that by working together, we will ensure win-win opportunities as well as engage candidly on serious issues with African governments. These frank, no-holds-barred conversations concerning our energy industry can guide African governments to create an enabling environment that is effective for investors and citizens alike.”

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