Chevron and Compañía Nacional de Petróleos de Guinea Ecuatorial (GEPetrol) have signed PSCs for two blocks offshore Equatorial Guinea.
The PSCs have been signed with Equatorial Guinea’s Ministry of Mines and Hydrocarbons for blocks EG-06 and EG-11, which are considered “highly-prospective”.
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The two offshore blocks are expected to be integral to the resurgence of offshore E&P in Equatorial Guinea, according to the African Energy Chamber (AEC).
The PSCs enable Chevron and the national oil company of Equatorial Guinea, GEPetrol, to initiate a fresh E&P campaign in these blocks, which were previously under ExxonMobil’s tenure.
The contracts provide a framework for the development of the assets, detailing minimum investment requirements, exploration plans, commitments to sustainable development and benefits for the state.
AEC executive chairman NJ Ayuk said: “The African Energy Chamber fully supports these efforts, which are expected to reverse the decline in production and pave the way for a new era of exploration, growth and prosperity in the region.”
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By GlobalDataAEC expects the two blocks to counter the decline in national oil production.
Equatorial Guinea has experienced a downturn in oil output due to the maturation of existing fields and insufficient investment in undeveloped assets.
The government is actively encouraging offshore exploration investments.
Equatorial Guinea Minister of Mines and Hydrocarbons Antonio Uburu Ondo said: “The signing of these production sharing contracts between Chevron, GEPetrol and the ministry marks a significant milestone in our ongoing efforts to revitalise the upstream sector.
“We are confident that the development of Blocks EG-06 and EG-11 will not only enhance oil production but also support our energy security efforts.”
In April 2024, GEPetrol selected UK-based Petrofac to support the operation of an asset in Equatorial Guinea.
The contract encompasses a range of technical services for onshore support bases, a floating production storage and offloading unit and a platform on behalf of GEPetrol.
