Equatorial Guinea outlines a path towards oil industry’s recovery
Like the rest of African petroleum producers, Equatorial Guinea has been through a year like no other. The travel restrictions imposed by the Covid-19 pandemic, coupled with a historic crash of oil prices, have sent its hydrocarbons industry in a deep crisis of uncertainty. However, the country’s industry has proved resilient and a strong dialogue between government authorities and companies has already laid the basis of a recovery in 2021.
The first positive signal comes from the latest investment expectations coming out of the evaluation of 2021 work and budget programs from upstream operators. They include over $1.1bn of investment forecast: $832.4m of investment commitment and $370m of contingent investment. Such figures are extremely encouraging for the upstream sector in the Gulf of Guinea and will inevitably result in an increase of oil & gas production from Equatorial Guinea next year. 2020 already managed to maintain production around 282,700 boepd, including 115,250 bopd and 31,000 bpd of condensates, according to the latest figures from the Ministry of Mines and Hydrocarbons (MMH).
As Equatorial Guinea renews with stronger investment inflows, it will also see new drilling activity. Three wells are notably expected to be drilled by Trident Energy on Block G: ALON A, ALON B and ALON C, with the campaign expected to start in Q2 2021. In addition, workover operations are also planned on the 5P and WI-1 wells in Aseng, operated by Noble Energy.
Click on the link below for full report