Equatorial Guinea makes advances on 100-Day petroleum milestones

industry 3197398 640Drilling plans, natural gas downstream investments, cross-border negotiations and a complete overhaul of the mining sector are just a few of the initiatives that Minister of Mines and Hydrocarbons HE Gabriel Mbaga Obiang Lima’s team has undertaken in recent months

Working to help the Central African oil producer overcome the challenges of the COVID-19 pandemic and the 2020 oil price slump, the Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea has drawn up a 100-day plan to push the sector forward and offer economic growth. The plan has now come to an end.

The two ongoing main projects in the country’s overarching plan to create a natural gas driven downstream mega hub at Punta Europa seem to be on track. According to an MMH evaluation report, the Backfill project meant to feed gas from the Alen field to the hub is 85% concluded, while the Punta Europa modular refinery is 90% concluded.

Phase two of a new compressed natural gas plant and a monitoring plan for the liquefied petroleum gas sector are 60%, and 50% concluded, respectively.

National gas company SONAGAS’ stake in Equatorial Guinea’s liquified natural gas plant, EGLNG, has also increased to 37.5%, from an initial 25%.

The MMH has drawn up and finalised a new onshore drilling plan as well as preliminary studies to identify targets in its continental basins. Negotiations with Cameroon for the joint development of the Yoyo-Yoland cross-border gas field have also been reactivated.

This period was also used for house cleaning, dealing with the issue of Exonmobil’s divestment of the Zafiro project and drawing up a follow-up plan, auditing both the national SONAGAS and GEPetrol companies and the ongoing international oil companies, and designing a cash call financing system for GEPetrol’s participation in production sharing agreements.

Addressing the issue that has been particularly relevant in recent months as Equatorial Guinea faced fuel shortages, the Ministry has also designed a new market entry system for GEPetrol’s and Total’s fuel reserves, the country’s two fuel distributors, as well as the supervision of the last stage of the construction of the Tradex pump stations.

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