Equatorial Guinea primed for high economic growth

Sierra Leone Telegraph: 12 December 2018:

2019 is set to be a bumper  year for Equatorial Guinea’s oil and gas sector, with Year of Energy  initiative providing impetus for intra-African cooperation.

Eleven new oil and gas wells will be drilled in 2019, with $2.4 billion investment, and emphasis placed on economic diversification, underscored by energy sector growth

After a year of sector recovery and pan-African alliance building, Equatorial Guinea is ready to capitalize on expected new investment and solidify its global standing through its ‘Year of Energy’ campaign.

In 2019, Equatorial Guinea will host and promote multiple events to champion its oil and gas projects and promote intra-African cooperation, including flagship events for the African Petroleum Producers’ Organization (APPO) and the Gas Exporting Countries Forum (GECF).

An improved economic outlook in Equatorial Guinea is due in large part to expected foreign direct investment in oil and gas during 2019, with 11 new wells to be drilled.

Already, five platforms have been contracted to perform drilling of new wells. These include greenfield prospects held by ExxonMobil, Kosmos Energy, Marathon Oil and Noble Energy.

2019 has been designated the Year of Energy by the MMH, highlighting the nation’s energy diplomacy in recent years, its investment in sustainable oil and gas sector growth at home, and its support for African oil and gas industry growth through memberships of APPO, GECF and its increasingly visible presence in the Organization for the Petroleum Exporting Countries.

“We have been busy in the downturn, working to improve our regulatory environment and attract new investment to the sector. Now that the oil price is at a sustainable level, activity in the oil and gas sector is set to take off at an unprecedented pace,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea.

“Equatorial Guinea recognizes the importance of working through influential organizations like OPEC and GECF to unite oil and gas producers and empower African countries with a voice on the international stage.”

In June 2017, Equatorial Guinea proved the value of its exploration assets during challenging times by successfully concluding the EG Ronda 2016 bidding round. Seven companies advanced to negotiations with the MMH. Next year, Equatorial Guinea will again put more oil and gas exploration blocks on offer for ‘EG Ronda 2019.’

Equatorial Guinea has worked to make the business environment appealing to international investors, while also protecting the local economy, and has moved up in the World Bank’s Doing Business Index, with particular improvements made during 2018 and 2019.

The global report specifically notes a law adopted in 2019 that regulates the mediation of contract disputes and creates a resolution mechanism, and a law from 2018 that eliminated the need to obtain an authorization from the Office of the Prime Minister to start a new business.

 “As the oil sector recovers, we are better able to diversify the overall economy. We have already moved forward with key projects in the downstream gas sector, including our regional LNG2Africa initiatives and the creation of a Gas Megahub for gas processing and exports,” said the Minister.

In 2019, Equatorial Guinea will host the triannual APPO Cape VII Conference & Exhibition (April 1-5, 2019), will promote its available acreage at the Africa Oil & Power Investor Forum (June 11) and Africa Oil & Power Conference in Cape Town (October 2-4) and will hold the GECF 5th Gas Summit (November 26-29, 2019), the first time the event is being held on the African continent.

Source: Ministry of Mines and Hydrocarbons, Equatorial Guinea

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