Oil major Chevron and Equatorial Guinea’s state-owned oil company GEPetrol have signed two production sharing contracts (PSCs), for offshore blocks EG-06 and EG-11 in Equatorial Guinea, representing a $2 billion investment.
Situated in close proximity to producing Block B which houses the Zafiro field, the blocks are considered to be highly-prospective and are poised to play a major part in revitalizing exploration and production offshore Equatorial Guinea.
Previously held by energy major ExxonMobil before its exit from the country earlier in 2024, Blocks EG-06 and EG-11 are located in deepwater acreage.
Block EG-11 measures approximately 1,242 km² while Block EG-06 featured an oil discovery at the Acestruz-1 well in 2017.
With the new PSCs signed with Equatorial Guinea’s Ministry of Mines and Hydrocarbons, Chevron and GEPetrol will kick off a new exploration and production campaign at the blocks, according to African Energy Chamber (AEC).
The contracts include provisions on aspects such as minimum investments, exploration programs, sustainable development and benefits for the state, therefore outlining a clear development plan for the assets.
This partnership is a testament to the country’s commitment to revitalizing exploration and boosting production offshore
“The recent PSC signing between Chevron, the Ministry, and GEPetrol marks a significant milestone in Minister Antonio Oburu’s upstream investment drive. This partnership is a testament to the country’s commitment to revitalizing exploration and boosting production offshore,” says NJ Ayuk, Executive Chairman of the AEC.
Beyond Blocks EG-06 and EG-11, Equatorial Guinea has seen a wave of activity in recent months.
E&P company Trident Energy launched a three-well infill drilling campaign on Block G at the start of 2024, with all three wells expected to come online mid-year.
The program utilizes the Island Innovator Rig which will then proceed to drill the Akeng deep exploration well in the Kosmos Energy-operated Block S. This campaign targets 180 million barrels of oil.
Additionally, VAALCO Energy is developing the Venus field in Block P. The upstream program involves the drilling of two producer wells and one water injector and the company aims to bring them online by 2026.
Meanwhile, Atlas Petroleum is seeking farm-in and drilling partners for Blocks EG-02 and H while three PSCs were signed in 2023 for Blocks EG-18 and EG-31 (Africa Oil Corp) and Block EG-01 (Panoro Energy).
To note, Equatorial Guinea boasts 1.1 billion barrels of proven crude oil reserves and 1.7 trillion cubic feet of proven natural gas reserves.
