Equatorial Guinea Signs MoUs with multinationals in Abu Dhabi to Boost Oil and Mining Exploration

EQUATORIAL GUINEA – The Ministry of Mines and Hydrocarbons of the Republic of Equatorial Guinea has signed several MoUs with successful bidders of its 2019 Licensing Round, on the sidelines of the Atlantic Council’s Global Energy Forum in Abu Dhabi.

Under EG-RONDA 2019, the government of Equatorial Guinea offered 27 free blocks for exploration across its sedimentary basins.

The licensing round generated interest from 53 companies and resulted in 17 bids.

In 2020, the Year of Investment will see the signing and execution of several such contracts and projects, not only in upstream but also midstream and downstream

In the oil sector, the country, through its Ministry of Mines and Hydrocarbons signed several MoUs with a number of multinational oil companies.

Some of the notable ones include Lukoil, GEPetrol,  WalterSmith, Hawtai Energy and Africa Oil Corporation.

Others in the oil sector include vaalco Energy and Levene energy which signed MoUs for the country’s blocks in the Duala , Niger and Rio Muni basins.

The signing of these MoUs is the first step towards the fast completion of the Production Sharing Contracts.

In addition, the Mining Licensing Round, which had also generated interest from several investors, resulted in the signing of MoUs with Blue Magnolia, who was assigned seven blocks for copper, rare earth elements, PGE, gold, lead, uranium and bauxite among others

Oro Sac ACorp (M-Partners) on the other hand was assigned four blocks for gold, platinum, copper, zinc, lead and nickel.

Akoga Resources was assigned two blocks for PGE, nickel, copper, cobalt, gold and lithium among others.

Manhattan Mining Investment Inc on the hand was assigned one block for gold, while Shefa Minerals was assigned one block for gold.

“The results coming out of the EG Ronda 2019 were very encouraging and we hope to see a robust and sustained exploration activity in Equatorial Guinea once these contracts are signed,” declared H.E. Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.

“In 2020, the Year of Investment will see the signing and execution of several such contracts and projects, not only in upstream but also midstream and downstream.”

Exploration activity has been slowly recovering in the Gulf of Guinea.

In 2019 for instance, Noble Energy announced a discovery after drilling the Aseng 6P well at a depth of 4,000 metres in Equatorial Guinea.

The discovery by Noble Energy confirmed expectations that the country remains a promising frontier for oil and gas exploration.

Recent discoveries are expected to add an additional 20,000 bopd to Equatorial Guinea’s oil production this year.

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