• 4 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 10 minutes Peak Shale Will Send Oil Prices Sky High
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 8 hours "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 8 hours WTI are we seeing the perfect storm
  • 13 hours Cheap natural gas is making it very hard to go green
  • 6 mins On Venezuela
  • 46 mins CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came back in 3 waves, Lasted 14 months and killed upward 5% World population
  • 18 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 3 hours I Love Hills
  • 1 day Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 20 hours Saudi Aramco launches largest shale gas development outside U.S.
  • 17 hours Investments worthy in versatile and clean natural gas
  • 1 day CDC covid19 coverup?
Oil Price Forecasts Take A Turn For The Worst

Oil Price Forecasts Take A Turn For The Worst

As China’s coronavirus epidemic continues…

OPEC’s Newest Member Looks To Raise Oil Production

OPEC

OPEC’s newest member country, Equatorial Guinea, is seeking to lift its crude production after smaller oil companies acquired stakes in offshore oil fields operated by U.S. Hess Corporation, Equatorial Guinea’s Minister of Mines, Industry and Energy, Gabriel Mbaga Obiang Lima, told Bloomberg in an interview published on Tuesday.

On Monday, Hess Corporation said that it had entered into an agreement to sell its interests in offshore Equatorial Guinea to Kosmos Energy and Trident Energy for a total consideration of US$650 million, effective January 1, 2017. Hess holds an 85-percent paying interest and is operator of the fields, while Tullow Oil holds a 15-percent paying interest, and the Republic of Equatorial Guinea holds a 5-percent carried interest.

The sale is part of Hess’s strategy to invest in higher-return assets and divest more mature, higher-cost assets, while Kosmos Energy sees the deal as capturing “a material position in proven but under-explored oil basin.”

Kosmos buying Hess’s interest in the Ceiba and Okume oil fields offshore Equatorial Guinea could boost the country’s production in the short to medium term, Obiang Lima told Bloomberg.

“For Equatorial Guinea, for Nigeria, for any producers it’s the same story -- we have been two years reducing costs, drilling very few wells,” the minister added.  

“The price that we’re having right now, we’re coming to the conclusion that we need to be realistic and learn to live with that price,” Obiang Lima told Bloomberg, commenting on the current oil prices.  

In May this year, Equatorial Guinea became a member of OPEC, and apart from being the newest member, it’s also the smallest producing nation part of the cartel. According to OPEC’s secondary sources, Equatorial Guinea’s production was 141,000 bpd in September, up from 133,000 bpd in August. Crude oil production averaged 185,000 bpd in 2015, and 164,000 bpd in 2016.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News