Equatorial Guinea's national oil company, GEPetrol, has secured a heads of agreement (HoA) with American oil major, Chevron, pushing its stake in Block I's Aseng Gas Project from 5% to a whopping 32.55%
This means a big break for the country, which came following months of negotiation since the Vice President, Teodoro Nguema Obiang Mangue's visit to the United States last year.
The partnership will go a long way in well establishing the country's stronghold on its natural resources, and leveraging Aseng output, as the single field is potential of determining several downstream and upstream developments under the Extended Gas Mega Hub initiative. Alongside big projects like Alen Tail and Yoyo-Yolanda, it also unlocks access for GEPetrol in Chevron-operated blocks and potential cross-border gas flows through Gulf of Guinea pipeline infrastructure.
The agreement further ensures for GEPetrol long-term gas supply to the Punta Europa complex that will help sustain existing LNG and processing infrastructure by improving cost efficiency and reducing stranded gas. As a gas monetisation hub, this will give the Equatorial Guinea an extra edge in the global commodities market, where LNG demand continues to gain prominence.
“This agreement represents a strategic step forward for our energy sector, enhancing national participation and opening the door for further projects that will drive industrial development, create jobs and strengthen energy security for our country and the region,” said Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development of Equatorial Guinea, following the signing of the agreement at the People’s Palace in Malabo, where senior government officials, Chevron executives and the United States Ambassador were also present.
The collaboration shows Chevron's reliance on Equatorial Guinea's oil and gas industry as well as its willingness for regional integration. The major is ready to support maximum state participation, with a greater emphasis on capacity building, knowledge transfer and local workforce development, to establish mutual opportunities from the country's broader Gas Mega Hub. This also reflects Equatorial Guinea's investors-friendly policies, which are adaptive to flexible financial solutions.
Alongside Aseng-operator, Chevron, and GEPetrol, the project also includes Glencore and Gunvor.
GEPetrol solidifies hold on Chevron's Aseng project
The partnership will establish the country's stronghold on its natural resources.
