As stated by the African Energy Chamber (AEC), the promotion of new acreage as part of the EG Ronda Oil and Gas licensing round is essential to ensuring long-term energy security for the African country, especially in the context of the global energy landscape evolving and production from mature fields declining.
“The importance of exploration cannot be overstated. New licensing rounds are the lifeblood of Africa’s upstream industry, ensuring that production levels remain strong and that new discoveries continue to fuel our economies. Equatorial Guinea’s commitment to advancing exploration is a testament to its strategic vision, and the AEC fully supports these efforts,” said Tomás Gerbasio, African Energy Chamber’s Vice President (VP) of Commercial and Strategic Engagement.
Ahead of the formal bidding procedure, the Ministry has invited all interested national and international oil and gas players to engage in direct negotiation with the state. According to the EG Ronda data, the round entails two appraisal/development blocks, EG-27 (former Block R) and EG-23, and 25 exploration blocks, two of which are onshore.
AEC confirmed that blocks H and 02, previously operated by Atlas Oranto Petroleum and PanAtlantic Energy (Vanco Energy), will also form part of the upcoming round. The country’s previous licensing round in 2019 offered 27 blocks for exploration, with 53 companies participating and 17 bids submitted.
The new licensing round will follow an eventful year in the country’s offshore arena. In November, Trident Energy disclosed the start of production from its C-45 infill well, one of two wells in its ongoing drilling program at the Ceiba and Okume Complex in Block G, which added over 5,000 barrels per day.
Five months before that, Chevron signed new production sharing contracts (PSCs) for blocks EG-06 and EG-11. Building on its existing interests in the Alen, Aseng, and Yolanda fields, the U.S. major outlined minimum investment commitments and exploration programs for the two blocks.
Chevron is also working on progressing the Gas Mega Hub project through its affiliate Noble Energy in partnership with Marathon Oil. Processing gas from the Alba field will form part of the project’s Phase II, while Phase III will integrate gas from the Aseng field.
Meanwhile, Vaalco Energy is set to lead a drilling program and field development push for Block P. The firm has a 60% working interest in and is the operator of the block which contains the Venus field development opportunity.
Equatorial Guinea’s national oil company GEPetrol is also set on boosting production capacity, focusing its efforts on revitalizing the Zafiro field. After taking over operatorship from ExxonMobil in June 2024, the state player launched a development plan to extend production from what is said to be the country’s largest oil field in offshore Block B.
The plan comprises three stages. Phase 1, set to start in early 2025, will reconnect selected wells that were previously produced via tiebacks to the Zafiro Producer floating production unit (FPU). At the same time, Phase 2 will focus on optimizing well production and costs, while Phase 3 will involve a full-scale redevelopment of the field after 2025.
In April 2024, GEPetrol handed out a five-year contract worth $350 million to Petrofac to deliver technical services and support the operation of the Block B asset.
