Equatorial Guinea has signed a landmark Heads of Agreement with ConocoPhillips to develop offshore Blocks B/4 and EG-27, a deal expected to unlock up to $9 billion in investment and cement the country’s position as a regional gas processing powerhouse. The agreement, signed by ConocoPhillips alongside the Ministry of Hydrocarbons and Mining Development, national oil company GEPetrol, and state gas firm SONAGAS, outlines terms for advancing both blocks into full-scale development with production projected to span more than 20 years.
The partners have six months to finalize Production Sharing Contracts for the projects, which Hydrocarbons Minister Antonio Oburu Ondo says could help restore national output to pre-2014 levels while maximizing long-term economic value. “These blocks will support production growth and unlock economic opportunities for decades to come,” Ondo stated, emphasizing the strategic importance of efficient development to the nation’s energy future.
Block EG-27 is estimated to contain as much as 2.8 trillion cubic feet of gas, while Block B/4 holds approximately 0.7 trillion cubic feet. Together, these significant commercial discoveries are capable of supplying substantial new volumes to the Punta Europa complex, the country’s flagship gas processing and liquefied natural gas export hub. The capital investment required to bring these reserves online is estimated at $9 billion, representing one of the largest energy investments in Central Africa.
The agreement aligns perfectly with Equatorial Guinea’s Gas Mega Hub initiative, designed to monetize stranded and associated gas from domestic and regional sources. By channeling additional feedstock to Punta Europa, the ConocoPhillips partnership is expected to reinforce the hub’s long-term viability and expand the country’s role in global LNG markets. ConocoPhillips’ involvement follows the export of the first LNG cargo from Punta Europa in June 2025, marking a milestone in the facility’s operational history.
For the U.S. major, the deal underscores a growing footprint in African gas plays, with Equatorial Guinea positioning itself as a key partner in the region’s energy transformation. The projects are expected to generate hundreds of millions of cubic feet of gas per day once developed, supporting both national consumption and LNG exports. The government is also preparing to launch its 2026 licensing round, introducing new exploration opportunities while reviewing hydrocarbons, tax, and labor laws to create a more competitive environment for international investors.
Source: worldoil.com