Previous Page  30 / 96 Next Page
Information
Show Menu
Previous Page 30 / 96 Next Page
Page Background

Alamy

Shutterstock

28

OPEC bulletin 8–9/17

M e m b e r C o u n t r y V i s i t s

“Usually you know the relevance of an organ-

ization not in the good times, but in the bad

times, and this has clearly been a good exam-

ple because OPEC has stepped in at a very impor-

tant moment. We believe it has stabilized very vola-

tile pricing and we believe that by continuing to work

together, we can continue to see benefits for a long time

for everybody.”

Equatorial Guinea was an important stakeholder

of the non-OPEC participants that were part of the

‘Declaration of Cooperation’ with OPEC back in December

2016. Given that it is now a Member of OPEC, the country

moves its production adjustment to OPEC.

Equatorial Guinea is a producer and net exporter of

liquids, as well as being a key producer and exporter

of natural gas. The country is also a member of the Gas

Exporting Countries Forum. It is estimated to be currently

producing around 260,000 barrels/day of liquids, and

according to OPEC’s

Annual Statistical Bulletin,

it pro-

duced around 6,212 million standard cubic metres of

natural gas in 2016. It is one of the largest oil and gas

producers in Africa.

Oil

The oil industry in Equatorial Guinea is relatively young.

While oil exploration began back in 1960,

it was not until 1995 that large oil

reserves were first discovered. In

1995, US oil major ExxonMobil

and Ocean Energy discov-

ered the

Zafiro oil field,

which is located

n o r t h - we s t o f

Bioko island.

Zafiro, brought

onstream in

1996, was

t h e f i r s t

d e e p w a -

ter field

i n We s t

Africa and

i s c u r -

rently the

main pro-

ducing field

in Equatorial

Guinea.

Within a decade Equatorial Guinea’s oil production

rose from around 17,000 b/d in 1996 to a record close to

375,000b/d in2005, beforedeclining in subsequentyears.

Other major fields in the country include those oper-

ated by US-based groups Hess Corporation, Marathon Oil

and Noble Energy.

For Hess, these are the Ceiba field, located about 30

km offshore in the Gulf of Guinea, which was discovered

in 1999 and began producing oil in 2000

and the adjacent Okume complex,

which was discovered in 2001,

with first production in 2006.

Net production for these two

fields in 2016 was around

33,000 barrels of oil equiv-

alent/day. For Marathon, it is

the Alba field, a major conden-

sate field, and for Noble Energy

it is the Alen and Aseng fields.

Given its recent oil production

decline, the government is looking to revive growth

with plans to increase oil production to 300,000 b/d in

around two years and 500,000 b/d in five years. With this

in mind, it opened a licensing round in 2016 to bring in

foreign investors for exploration projects.

This culminated recently in the country signing a

new production-sharing contract with ExxonMobil for

offshore block EG-11. In announcing the award, Obiang

Lima said “Block EG-11 is the jewel among a group of

already very prospective blocks that we are signing in

2017.” Other successful bidders included Nigerian-

based Taleveras, UK-based Ophir Energy and Irish-based

Clontarf

Energy.

In another recent development, in May 2017 the

government signed an agreement with UAE-based

Arabian Energy to collaborate on the petroleum tank

development, implementation, construction, and

financing of the Bioko Oil Terminal. The agreement is

expected to see the project gather momentum as the

government and the Ministry of Mines, Industries and

Energy looks to establish the country as an energy trad-

ing hub for all of West Africa.

The BiokoOilTerminal — to be located on Bioko island

32 km offshore — is a $500 million petroleum products

storage facility that the government hopes will drive job

creation, reduce imports,

increase invest-

ment, build local

capacity, and

Ceiba field:

30 km offshore

Bioko Oil Terminal: 32 km offshore

— $500 million petroleum products

storage facility

CEIBA

Equatorial

Guinea

BIOKO

$500

million

The Basilica of the

Immaculate Conception

of the Virgin Mary in

Mongomo, Equatorial

Guinea.

View of an oil installation

in Malabo Sipopo,

Equatorial Guinea.