Equatorial Guinea to open bid round with upstream focus

Equatorial Guinea is preparing to open doors to investors in home and abroad as it is working on launching a new licensing round this year, with a special focus on upstream

According to the Equatorial Guinea's Minister of Mines and Hydrocarbons, Antonio Oburu Ondo, the Ministry is particularly enthusiastic about the country's offshore acreage, which they are looking to develop in collaboration with Cameroon. These include the Yoyo and Yolanda fields, the Etinde gas field and the Camen and Diega fields, which lies in the maritime borders of these two countries. 

The upcoming licensing round will promote new acreage, including Block H and Block 02, previously operated by Atlas Oranto Petroleum and PanAtlantic Energy (Vanco Energy). 

Last time the country had held a licensing round was in 2019, when 27 blocks were offered. It saw participation from 53 companies, with 17 bids submitted. 

Equatorial Guinea continues to deliver attractive exploration opportunities, with elements of an active petroleum system found in the Upper Albian region of one of the wells from Block S a couple of months back. In Block G, Trident Energy remains ahead of schedule following a production optimisation programme on Okume and Ceiba infill wells, boosting yield by more than 5,000 barrels of oil per day. 

International energy services providers are increasingly operating in the region, with Petrofac being one of the latest examples. GEPetrol signed a US$350mn technical services contract with the company in April last year to develop the Zafiro field in Block B, which is known to be the country's largest. The five-year contract includes support services for onshore bases, a floating production storage and offloading (FPSO) vessel and platform for the operator. It will encompass a holistic asset solution, including operations, maintenance, asset integrity, integrity management, marine services, well engineering, project delivery and supply chain services. 

GEPetrol has a multi-phase development plan with the Zafiro field, with Phase 1 to reconnect selected wells that were previously produced via tiebacks to the Zafiro Producer floating production unit. Phase 2 is supposed to run in parallel, with production and cost optimisation drives, followed by a full-scale redevelopment of the field as part of Phase 3. 

Petrocfac is also providing a master service agreement for Marathon Oil to support key onshore and offshore assets, including five offshore steel jacket facilities in the Alba Field and the Alba Gas Plant onshore. The Alba field is part of Equatorial Guinea's Gas Mega Hub project, in which Chevron is a key player. Processing gas from Alba will mark the second phase of the project, while Phase III will involve gas integration from the Aseng field. 

Chevron's presence in the Equatorial Guinea also includes production sharing contracts (PSCs) in Blocks EG-06 and EG-11, which are an extension of its existing interests in the Alen, Aseng and Yolanda fields.

Vaalco Energy, on the other hand, is focusing on exploration and production from Block P, working on a plan of development following the finalisation of a PSC for the asset in August.