Marathon Oil commits to increase investment in Equatorial Guinea’s Gas and Oil sector

EQUATORIAL GUINEA — Marathon Oil Corp, one of the biggest energy investors in Equatorial Guinea, has committed to increase its investment in the required infrastructure to support the Government’s vision for the Gas Mega Hub.

The commitment was after the oil multinational’s Chairman, President and CEO Lee Tillman and Executive Vice President Mitch Little were given a courtesy visit by Equatorial Guinea’s President H.E. President Teodoro Obiang Nguema Mbasogo.

The head of state was in the company of H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons and the four discussed Marathon Oil’s short and long-term future plans in the country.

Marathon Oil reiterated its commitment to Equatorial Guinea and towards the development of the country’s Gas Mega Hub, a major boost to the Government’s Year of Investment initiative.

Some of the investment by Marathon include unlocking funding to promote the delivery of gas from neighboring countries and cross-border fields to maximize existing facilities and possibly consider a second LNG train.

Marathon Oil also declared support for the Ministry’s efforts to construct a modular refinery in Punta Europa by undertaking a conceptual study on the Ministry’s behalf.

 “Marathon’s disciplined and consistent performance is going to ensure that Equatorial Guinea can continue to count on a partner that is tried, true and tested when it comes to running world-class gas projects, stated H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.

“I have no doubt that under Chairman, President and CEO Lee Tillman, Marathon will continue to be a strong, resilient, and well positioned partner for the future of Equatorial Guinea.”

Marathon Oil stated that it continues to prioritize the ongoing Alen backfill project currently under implementation with Noble Energy, Glencore, Atlas and Gunvor.

Efforts are also underway to accelerate gas for delivery by year end 2020, currently scheduled for first quarter 2021. The project is an important step towards replacing declining output from the Alba field.

Both parties also agreed to immediately commence feasibility studies related to methanol, gasoline and other methanol derivatives, in coordination with the Ministry of Mines and Hydrocarbons.

Equatorial Guinea’s economy relies heavily on its oil and natural gas industry, which accounted for more than 60% of its gross domestic product (GDP), 80% of its fiscal revenue, and 86% of its exports in 2015, according to estimates from the International Monetary Fund’s country reports.

Recent declines in production and the increasingly volatile prices of oil in the international market have adversely affected the country’s economy.

The government has responded by launching initiatives to try and restore vibrancy to a sector which is the backbone of the national economy the latest being the Year of Investment.

Many foreign investors are already showing interest and are planning to increase their investment in Equatorial Guinea this year, or enter the market to tap into several opportunities across the hydrocarbons and mining value chains under the Year of Investment initiative.

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