Oil & Gas

Chevron, a US-based company, is expanding its oil and gas operations in Equatorial Guinea. This expansion comes as the company seeks to take advantage of offshore assets that ExxonMobil abandoned in 2024. According to information from a specialized energy platform in Washington, Chevron has entered into a production-sharing agreement with GEPetrol, a state-owned entity in Equatorial Guinea.

This partnership highlights Equatorial Guinea's dedication to enhancing its offshore exploration and production capabilities. The country aims to bolster its proven reserves, which include 1.1 billion barrels of crude oil and 1.7 trillion cubic feet of natural gas. The interest from major global energy companies, such as Chevron, signifies a broader trend of increasing investment in African nations' energy sectors. However, ExxonMobil's recent exit from key maritime assets in Equatorial Guinea has stirred some controversy.

The investment deal between Chevron and the local company G Petroleum is valued at $2 billion, targeting the deep-water blocks EG-06 and EG-11. Previously, ExxonMobil held these blocks before divesting its assets in the country. The joint agreement, which includes Equatorial Guinea's Ministry of Mines and Hydrocarbons, gives Chevron the green light to commence exploration and production. Offshore Engineer reports that the contracts outline various regulations, including investment values, drilling and exploration programs, and the returns Equatorial Guinea will receive from developing these offshore assets.

The President of the African Chamber of Energy, NJ Ayok, emphasized the significance of the Chevron - G Petroleum agreement, calling it a pivotal moment for hydrocarbon exploration investments in Equatorial Guinea. The development blocks, located near the productive Block B and the Zafiro field, are seen as attractive investment opportunities. Additionally, Chevron owns other assets in the country, including the Asing, Allen, and Yolanda fields in Block 1, and is developing a major gas processing center through its subsidiary, Noble Energy. Equatorial Guinea continues to develop its oil and gas sector, with ongoing campaigns by other companies like Trident Energy and VAALCO, aiming to increase production and support energy security in West Africa.