Equatorial Guinea’s Ministry of Mines and Hydrocarbons (MMH) has estimated that $1.2 billion will be invested into its hydrocarbon sector in 2020.
Equatorial Guinea’s MMH has concluded its evaluation of work programs and budget meetings of multiple oil blocks in the country, corresponding to the 2020 fiscal year, which has yielded many successful results, according to a Monday statement by African Energy Chamber.
A major outcome of these meetings is the expected direct investment of a minimum of $1.4 billion and a firm $1.2 billion and a contingent forecast of $273 million predicted for 2020, associated with the drilling of two wells and the continuous development of six existing wells.
The expected investment will support several oil field projects, aid in the generation of reservoir models, and assist in the preparation of drilling equipment in identified prospects up until the first quarter of 2021. The investment will also generate a robust amount of direct and indirect jobs in the country’s hydrocarbon sector specifically for citizens of Equatorial Guinea.
“We expect 2020 to be the biggest year of investment in Equatorial Guinea’s hydrocarbons industry in years. This is a strong sign of our industry’s enduring attractiveness and will enable us to continue increasing oil and gas production, support local companies and create jobs,” stated Gabriel Mbaga Obiang Lima , Minister of Mines and Hydrocarbons.
In 2019, Noble Energy, Trident Energy, and Kosmos Energy, all made offshore discoveries and will enter 2020 doing further appraisals. Those offshore campaigns are expected to yield positive results in Equatorial Guinea’s efforts to reverse oil production declines.
Noble Energy made a new discovery in Block 1 offshore Equatorial Guinea in August and Trident and Kosmos Energy made a joint oil discovery at the S-5 well in November.
In addition, as reported earlier on Monday, Equatorial Guinea’s oil and gas ministry has given ExxonMobil more time to “ascertain the full commerciality” of two offshore blocks EG06 and EG-11, giving the company a six-month extension for the offshore blocks.
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