Equatorial Guinea’s Minister of Mines and Hydrocarbons has invited Irene Muloni, Uganda’s Minister of Energy, to attend the 5th GECF Summit
The event will take place in Malabo on 25-27 November.
Speaking about Equatorial Guinea’s interest in supporting the development of Uganda’s oil and gas industry, Equatorial Guinea’s Minister Gabriel Mbaga Obiang Lima encouraged the country to continue with the oil and gas plans which are “the best one can find anywhere in the world,” he said.
He further stated that, should the East African country continue with its plans, Equatorial Guinea may learn from it in the years to come.
This visit follows the signing of a Memorandum of Understanding (MoU) by both countries in 2017 for cooperation in oil and gas development. Under the MoU, Equatorial Guinea will provide guidance to Uganda and assist it in achieving its oil and gas production targets, and advise it on the signing of petroleum agreements.
In a major development for the GECF Summit, President João Lourenço of Angola will attend and address the annual summit. Angola joined the GECF as an observing member in November 2018.
President’s Lourenço active participation in this year’s summit reflects the growing importance of the natural gas sector to his administration’s long-term plan to grow and diversify Africa’s third-largest economy.
Angola’s oil sector has faced challenges in recent years. Production has fallen from a peak of 1.9m barrels per day in 2010 to just above 1.4m bopd. Furthermore, with limited refining capacity, Angola’s large oil production has done little to power the economy’s industrial sector, leading to fuel shortages like the one which hit Luanda recently.
Upon taking office in September 2017, President Lourenço’s priorities were clear: reform oil and grow gas.
In May 2018, President Lourenço issued a presidential decree which included specific policies to attract new investment into the natural gas sector. This includes a five per cent tax on gas production, compared to ten per cent for oil; as well as a 15 per cent income tax rate for non-associated gas (compared with a 25 per cent rate for associated gas and oil). These attractive incentives, combined with a reformed licensing process and a renewed focus on reducing corruption, have put Angolan gas on the map.
