Equatorial Guinea’s Minister of Mines and Hydrocarbons, Antonio Uburu Ondo, will speak at the 2024 edition of the African Energy Week (AEW): Invest in African Energy conference – taking place November 4-8. The event brings together global financiers and African governments, setting the stage for deals to be signed and developments to kick off.
To attract foreign investment in domestic gas opportunities, the Ministry of Mines and Hydrocarbons is in the process of implementing a series of measures to strengthen the business climate for oil and gas companies. Various fiscal amendments are poised to come into force this year, including a reduction of Corporate Income Tax from 35% to 25% – translating into a reduction of 10 points – and the reduction of Dividend Tax from 25% to 10% – a reduction of 15 points. AEW 2024 will showcase upcoming opportunities and competitive investment terms, connecting investors to Equatorial Guinean projects.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
Speaking during the 2023 edition of AEW, Minister Ondo said that “We are open for business, we are open to host new investors and we are inviting you to be very pragmatic when you approach Equatorial Guinea,” and ease of doing business in the country has already led to several developments being made.
Equatorial Guinea signed three production sharing contracts with independent exploration and production company Panoro Energy and oil and gas company Africa Oil Corporation in 2023. Panoro was awarded a 56% participating interest and operatorship in Block EG-01, enabling the company to conduct subsurface studies on existing seismic data to identify and define hydrocarbon reserves over a period of three years. Meanwhile, Africa Oil Corporation was awarded PSCs for Blocks EG-18 and EG-31, marking the company’s entry into the market.
Additionally, government signed a Heads of Agreement with independent energy company Marathon Oil in 2023 to progress the next stages of the Gas Mega Hub (GMH) initiative – aimed at establishing the country as a regional hub for processing stranded gas resources. Phase II involves processing gas from the Alba Unit under new contractual terms while Phase III will process gas from the Aseng field at Punta Europa facilities. This next stage of development consolidates the country’s position as a regional gas hub while strengthens Equatorial Guinean LNG exports at a time when global gas demand is projected to grow by 100 billion cubic meters in 2024.
The country is making great strides towards increasing LNG exports. Marathon Oil entered into a five-year LNG sales agreement with Glencore for a portion of produced Alba field gas in October 2023, with the agreement coming into effect in January 2024. Further investment in upstream gas will be required to give exports an additional boost, highlighting lucrative opportunities for project developers and global consumers.
Meanwhile, Equatorial Guinea is making moves to establish its regional stronghold, with an agreement signed with Cameroon in 2023 on cross-border oil and gas development. As per the terms of the deal, the countries will jointly develop projects along the maritime border, including the Yoyo and Yolanda fields; the Etinde gas field; and the Camen and Diega fields. A similar agreement was struck in 2022 with Nigeria, paving the way for West African gas to be processed in Equatorial Guinea. Such agreements pave the way for new monetization opportunities, and investment prospects are emerging within the power generation; LPG; and blue hydrogen industries.
“Equatorial Guinea has the right mindset: drill more wells, collaborate with regional neighbors, and monetize untapped natural gas. Initiatives such as the GMH will not only generate new streams of revenue for Equatorial Guinea but support the monetization efforts of regional countries. By investing in Equatorial Guinea’s energy industry, project developers and financiers stand to transform the entire West African region’s economy,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.
Investment opportunities across the Equatorial Guinea natural gas value chain will come to the fore during AEW 2024: Invest in African Energy. Minister Ondo’s return to the event this November underscores the government’s commitment to engaging with global investors to unlock new projects in Equatorial Guinea.
Distributed by APO Group on behalf of African Energy Chamber.