The Ministry of Mines and Hydrocarbons of Equatorial Guinea has granted ExxonMobil a six-month extension for offshore blocks EG06 and EG-11
Located next to legacy oil-producing Block B and EG-11, the licenses are considered highly prospective acreage. ExxonMobil discovered oil at the Block EG-06 Avestruz-1 well in October 2017 and has been assessing its commerciality since.
Avestruz-1 is located approximately 160 km offshore Malabo in an exploration area adjacent to ExxonMobil’s Zafiro field, a prolific legacy oilfield in Equatorial Guinea’s northern maritime area. The company has signed its production sharing contract for Block EG-06 in 2015, followed by entry into nearby Block EG-11 in 2017.
“The resource potential on these two blocks is huge and we want to give the operator enough time to ascertain the full commerciality of these reservoirs,” said Gabriel Mbaga Obiang Lima, the minister of Mines and Hydrocarbons.
The country expects major oil and gas investments in 2020
The ministry has concluded its evaluation of work programmes and budget meetings of multiple oil blocks in the country corresponding to the 2020 fiscal year, which has yielded many successful results.
A major outcome of these meetings is the expected direct investment of a minimum of US$1.4bn; a firm US$1.2bn and a contingent forecast of US$273mn predicted for 2020, associated with the drilling of two wells and the continuous development of six existing wells.
The investment will support several oil field projects, aid in the generation of reservoir models and assist in the preparation of drilling equipment in identified prospects up until the first quarter of 2021. The investment will also generate a robust amount of direct and indirect jobs in the country’s hydrocarbon sector specifically for citizens of Equatorial Guinea.
“We expect 2020 to be the biggest year of investment in Equatorial Guinea’s hydrocarbons industry in years. This is a strong sign of our industry’s enduring attractiveness and will enable us to continue increasing oil and gas production, support local companies and create jobs,” stated Gabriel Mbaga Obiang Lima.
In 2019, Noble Energy, Trident Energy and Kosmos Energy, all made offshore discoveries and will enter 2020 doing further appraisals.
