Continental Focus, International Reach

Equa G Hopeful on Production Boost

Tuesday, March 5, 2019

Equatorial Guinea is optimistic that it will see a small boost in oil production over 2019 thanks to an increase in drilling. The island nation has plans to launch a new licensing round in April to also help boost its oil and natural gas sectors, Gabriel Obiang, the oil minister, said.

The licensing round will include at least 26 offshore blocks, Obiang told S&P Global Platts in an interview. “Four of these blocks have already seen discoveries while 22 of them are undiscovered, Obiang said. “Hopefully, we will be able to close the licensing round in September and October we will be in a place to do some negotiations and hopefully sign some contracts in November.”

Obiang explained that the blocks included in the Fortuna LNG project, still without a FID, will be added to the licensing round. UK-based Ophir Energy lost the license to develop the offshore Fortuna gas discovery after the permit expired at the end of the year.

“What we will do with Fortuna is we are going to be put it in the licensing round,” he said. “The difference is the bidders will not only have to present an exploration plan but also a possible development plan.”