· Equatorial Guinea has come out with a series of strategic
measures to assist oil and gas exploration companies, which are
designed to lessen the financial burden of the hydrocarbon sector
· As a follow up of this, Equatorial Guinea has signed a new
Ministerial Order extending all exploration blocks across its
sedimentary basin for two years
Equatorial Guinea has come out with a series of strategic measures to
assist oil and gas exploration companies, which are designed to
lessen the financial burden of the hydrocarbon sector. The
announcement is basically to help the oil companies during the
difficult times they are undergoing during the Covid-19 coupled with
steady decline in the oil prices, which has put a question mark on the
oil exploration.
As a follow up of this, Equatorial Guinea has signed a new Ministerial
Order extending all exploration blocks across its sedimentary basin
for two years. This measure will support oil companies exploring and
producing oil and gas in the Gulf of Guinea. The new rules were
announced by the Ministry of Mines and Hydrocarbons. Exploration
companies will benefit from extensions granted for seismic and
exploratory drilling activities. Producing companies will be
benefitting from capital expenditures relaxations. Companies are
allowed to readjust their expenditures and project’s execution, taking
into consideration delays due to the pandemic. They also can plan
for more efficient investments as markets continue to recover.
Equatorial Guinea has adopted a market-driven attitude and approach to
the current industry challenges. Some of the oil companies, which are
going t o benefit from the liberal rules are Vaalco Energy, which
holds a 31% working interest in Block P, Kosmos Energy, which
operates Blocks W, EG-21 and EG024 , Noble Energy, which can get
flexibility in the exploration and production of offshore gas in the c
