Equatorial Guinea has relaunched its open-door licensing process for 2025, setting the stage for a significant oil and gas licensing round at the end of 2025 or early 2026. This move is part of the country’s broader strategy to attract investment, increase hydrocarbon production, and enhance its global competitiveness.
Minister of Mines and Hydrocarbons, Antonio Oburu Ondo, unveiled the country’s exploration strategy at CERAWeek by S&P Global in Houston, where he highlighted regulatory reforms aimed at making Equatorial Guinea a more attractive destination for energy investors.
Key Fiscal and Regulatory Changes
The government has introduced several financial incentives to drive investor interest, including:
- A reduction in corporate tax from 35% to 25%
- A cut in dividends tax from 25% to 10%
- A decrease in withholding tax from 6.25% to 3% for residents (or from 15% to 10% for non-residents)
The country’s open-door policy allows international oil and gas companies to apply for licenses through direct negotiations with the state, streamlining the licensing process.
Recent Licensing Successes and Future Plans
So far, Equatorial Guinea has successfully awarded seven production-sharing contracts, including:
- Blocks EG-31 and EG-18 to Africa Oil Corp
- Blocks EG-11 and EG-06 to Chevron
- Blocks EG-23 and EG-01 to Panoro Energy
- Block EG-08 to Antler Global
The upcoming licensing round will be backed by a new competitive tax law, a strengthened hydrocarbons law, and the launch of a multi-client 3D seismic acquisition initiative. This initiative aims to provide investors with high-quality geological insights and improve exploration accuracy.
Gas Mega Hub Initiative
Equatorial Guinea is also pushing forward with its Gas Mega Hub initiative, a key part of its energy strategy. The country is working with Cameroon on the Yoyo-Yolanda fields and with Nigeria on the Gulf of Guinea Pipeline Project to expand gas production and processing at the Punta Europa facilities.
Several major gas monetization projects are currently underway, including:
- Alen Gas Monetization Project (580 billion cubic feet)
- Alba Tail Gas Monetization Project (825 billion cubic feet)
- Aseng Gas Monetization Project (~1 trillion cubic feet)
Additionally, Equatorial Guinea is advancing climate initiatives and seeking international partnerships to establish carbon credit ventures while transitioning toward cleaner energy solutions.
Source: World Oil
