Organization of the Petroleum Exporting Countries (OPEC) President Antonio Oburu Ondo is taking the lead in an upstream investment drive in Equatorial Guinea, positioning the country as the perfect destination for exploration activities.
As a keynote speaker at the upcoming African Energy Week (AEW) 2023 conference in Cape Town from October 16-20, Equatorial Guinea’s Minister of Mines and Hydrocarbons will also highlight the progress made in Equatorial Guinea and advocate for increased gas-directed investments this year and beyond, according to the press statement by from organizers.
Equatorial Guinea discovered its large oil reserves in 1996, a development that led to the economic transformation of the country. In 2021 Equatorial Guinea produced and exported 93,000 barrels of crude oil per day, and 4,694 million cubic meters of natural gas. The African nation became full member state of OPEC in May 2017.
Serving as President of OPEC and the Minister of Mines and Hydrocarbons, Ondo brings with him a wealth of experience, having previously served as the Managing Director of national oil company GEPetrol where he was instrumental in positioning the company as a major player in the regional energy industry. As such, he is well versed in the upstream sector and is the best person to lead Equatorial Guinea’s efforts in attracting major players into the country.
Despite having only been appointed Minister this year, Ondo has already made significant progress to expand Equatorial Guinea’s upstream industry. He signed three producing sharing contracts (PSC) in February 2023 – one with independent E&P company Panoro Energy and two with Africa Oil Corporation – whereby Panoro Energy was awarded a 56% sharing interest operatorship in Block EG-01 while the signing of duo-PSCs with Africa Oil Corporation enabled the company to enter the Equatorial Guinean market. With the PSCs, Africa Oil Corporation will own an 80% interest in Block EG-18 and EG-31, respectively. These partnerships signify the country’s openness to collaboration and as well as the massive potential in its upstream sector.
Equatorial Guinea ia a net exporter of crude oil, it is also a key producer and exporter of natural gas. In former times, Equatorial Guinea exported coffee, timber and cocoa.
Another prominent upstream oil company that has recognized Equatorial Guinea as an exploration hotspot is Kosmos Energy. The company has focused on production optimization services, as well as infrastructure-led exploration in proven basins within Equatorial Guinea. Kosmos Energy’s achievements in Equatorial Guinea have been remarkable, leading to the firm and its partners securing an extension of the production sharing contract for Block G, with interests in blocks, EG-21, EG-24, and S. This significant milestone was made possible through collaboration with the Ministry of Mines and Hydrocarbons of Equatorial Guinea and is a testament to the country’s enabling and investor friendly environment.
“Minister Antonio Oburu Ondo has a long history of understanding the industry, and as such, he will help keep the market stable and continue working on attracting the necessary hydrocarbon-focused investments into the country, building on the progress that has already been achieved in Equatorial Guinea,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.
Equatorial Guinea has already positioned itself as an active player in the global oil and gas industry, exporting oil and gas to international markets. Additionally, the country is poised to play a vital role in the processing of liquefied natural gas (LNG) from neighbouring countries like Nigeria and Cameroon. This strategic positioning presents a unique opportunity for investors to participate in the development of a cross-border Mega-Gas-Hub. As such, the successful processing of LNG requires the expertise and investment of highly skilled companies and investors. With the Mega-Gas-Hub expected to see profitable results, it is in investors’ best interest to seize the opportunity to capitalize on this development.
In this scenario, Minister Ondo understands the importance of formulating a comprehensive plan that will ensure the profitability and success of these projects. AEW 2023 will provide an ideal platform for Ondo to bolster relations with international companies and neighbouring countries and the broader African continent, attracting potential investors who can contribute to the feasibility and prosperity of these initiatives.
Investors stand to benefit immensely from engaging in these projects, as they represent a massive investment opportunity with the potential to generate significant economic growth and prosperity. Equatorial Guinea’s commitment to becoming a regional energy powerhouse and its collaboration with neighbouring nations make it an attractive destination for investors seeking long-term returns and sustainable development.
With his deep understanding of the industry and his commitment to securing better fiscal terms, Minister Ondo is instrumental in enticing more explorers to invest in Equatorial Guinea, ultimately leading to increased production and further positioning the country as a preferred destination for upstream investment. AEW 2023 will therefore serve as a platform for Ondo to connect with stakeholders, African leaders, international and regional companies to incentivize new investment into the country’s upstream sector.
“Equatorial Guinea continues to make promising strides of becoming an oil and gas mega hub, and the chamber will continue to work closely with the Ministry of Mines and Hydrocarbons to realize their national objectives and support their drive to increase investments in its upstream sector. Equatoguinean resources, expertise and partnerships will be key for Africa’s energy future, and we look forward to seeing developments across all of these arenas during this year’s AEW conference,” adds Ayuk.
African Energy Week (AEW) is the African Energy Chamber’s (AEC) interactive exhibition and networking event, established in 2021, that seeks to unite African energy stakeholders, drive industry growth and development, and promote Africa as the destination for African-focused events.