Equatorial Guinea Ministry of Mines and Hydrocarbons has announced the conclusion of several meetings for the evaluation of the Work and Budget Programs for the development of the country’s oil and gas fields in 2021. The meetings held in Malabo and Bata, and both were aimed at carefully examining the country’s exploration and production dynamics and establish a roadmap for 2021.
Like every other African country, the COVID-19 pandemic which caused the historic drop in demand, global cut in supply and unstable oil prices, led to cut in foreign investments and dealt a blow to operational performances in 2020. Also, most of the projects on Equatorial Guinea’s “2020 Year of Investment” program were shifted to 2021.
The Ministry of Mines and Hydrocarbons announces a forecast of foreign direct investment for 2021 of $1,107,046,000. Such inflow consists of $832,406,000 firm commitment and $370,642,000 contingent investment.
The Ministry reaffirms its commitment to support foreign capital in the Republic of Equatorial Guinea. The Ministry granted special extensions for capital projects in 2020 which allows operators and investors to continue their geophysical and geological studies and activities and identify structures to be drilled at the end of 2021 or in 2022.
Renewed investment inflow in the hydrocarbons sector of the country will inevitably increase in the Republic of Equatorial Guinea’s daily production of oil and gas. The Ministry of Mines and Hydrocarbons expects a substantial jump in production figures in 2021, along with key drilling activities for new wells in the Trident Energy-operated Block G.
The Minister of Mines and Hydrocarbons Equatorial Guinea, Gabriel Obiang Lima said, “Equatorial Guinea remains committed to providing an enabling environment for companies to operate in the country in good and bad times. We will continue to engage with all operators to make sure that the best measures are taken to support the recovery of upstream activities.”
“As the upstream sector looks up, the Ministry of Mines and Hydrocarbons will also continue its efforts to promote the key projects and opportunities that have made its Year of Investment a success despite challenging conditions this year.”
Other infrastructural projects that are expected to boost the country’s recovery in 2020, such as modular refineries and gas-based manufacturing units, are also in the pipeline.