Equatorial Guinea aims to add 20,000 barrels of crude oil per day (bpd) to its production output by October, increasing production to 140,000 bpd, Minister of Mines and Hydrocarbons, H.E. Gabriel Obiang Lima has said.
Noble Energy, Trident Energy and Kosmos Energy have made recent offshore discoveries in Equatorial Guinea–which are expected to yield positive results in the country’s efforts to boost oil production – and will continue appraisals throughout the year.
“We expect an increase this year of around 20,000 bpd additional because of the new discoveries,” the minister noted.
He also pointed out that up to five additional blocs will be put up for licensing in April and the construction of two refineries, which are expected to process up to 40,000 bpd of crude oil, will most likely be up and running by the end of the year.
A member of the Organization of the Petroleum Exporting Countries (OPEC), Equatorial Guinea currently produces 120,000 bpd. In Equatorial Guinea’s budget for 2020, the oil prices is forecast at US$ 51 a barrel.
The government of Equatorial Guinea has signed memorandums with the winning companies for the 27 free blocks offered for exploration last year. The licensing round generated interest from 53 companies and resulted in 17 bids. The memorandums were signed on the sidelines of the Atlantic Council’s Global Energy Forum in Abu Dhabi on Monday.
According to African Energy Chamber, MoUs have been signed for Block EG-27 with Lukoil and GEPetrol (Niger Basin, offshore), EG-23 with WalterSmith, Hawtai Energy and GEPetrol (Niger Basin offshore), EG-09 with Noble Energy and GEPetrol (Duala Basin, offshore), EG-18 with Africa Oil Corporation and GEPetrol (Rio Muni basin, offshore), EG-03, EG-04, EG-19 and Block P with Vaalco Energy, Levene Energy and GEPetrol (Rio Muni Basin, onshore) and EG-28 with GEPetrol (Rio Muni Basin, offshore). The signing of these MoUs is a first step towards the fast completion of the Production Sharing Contracts.
“In 2020, the Year of Investment will see the signing and execution of several such contracts and projects, not only in upstream but also midstream and downstream,” Minister Obiang Lima said.