A source from the oil ministry told Reuters that Equatorial Guinea’s energy industry has secured $2.4 billion of new investment from U.S. firms. The source said it is expected that 11 wells will be drilled from next year.
Gabriel Obiang Lima, Equatorial Guinea’s oil minister warned in September that the government might refuse extensions of existing licences to oil companies unless they collectively invested a minimum of $2 billion in the country.
Following three weeks of talks in Frankfurt, Houston and Dallas, the source from the oil ministry said “we have secured $2.4 billion worth of investment that will go into drilling, into the backfill project and increasing production which has been declining”.
ExxonMobil, Kosmos Energy, Marathon Oil Corp and Noble Energy are some of the companies expected to invest in the country. Equatorial Guinea is Sub-Saharan Africa’s third-largest oil producer and relies mainly on oil and gas exports to power its economy.
To raise the prospect of boosting LNG output and state energy revenue, future production is based on pooling supply from stranded gas fields in Equatorial Guinea and the wider region.
Equatorial Guinea will officially launch a new oil and gas exploration round in April, not January as previously announced, the source said, and expects to announce the results later in 2019.