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Equatorial Guinea has signed a strategic agreement with Saudi Arabia under which OPEC’s biggest producer and exporter will cooperate with the African country in the construction and financing of the Bioko Oil Terminal tank farm project that will be West Africa’s largest oil and oil products storage facility.
According to Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima, the facility will also be the third-biggest storage facility in Africa that would firmly put his country on the global energy map.
The signing of the deal took place earlier this week during a state visit of Equatorial Guinea’s top politicians to Saudi Arabia, where they held a bilateral economic forum.
The project to build Bioko Oil Terminal on the Bioko Island offshore the Equatorial Guinea is being developed by South Africa-based independent oil and gas company SacOil, the Ministry of Mines, Industries and Energy of Equatorial Guinea, Taleveras Exploration and Production DMCC, Gunvor Group, and the Strategic Fuel Fund Association.
Sealing deals for the biggest oil terminal in West Africa was not the only energy mission that Equatorial Guinea’s officials sought in Saudi Arabia.
While in Saudi Arabia, Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo said that Equatorial Guinea had now submitted the application to become a member of OPEC, and that Saudi King Salman bin Abdul Aziz would lobby for the African country to be accepted as a member, the Equatorial Guinea Press and Information Office said in a statement on Friday.
In January, Equatorial Guinea first said that it had applied to join OPEC as its 14th member. The country was one of 11 non-OPEC producers that pledged to take off the market a combined 558,000 bpd of production as part of the output cut deal. Equatorial Guinea has pledged to cut output by 12,000 bpd under the agreement, and reiterated on Thursday its commitment to stick to that pledge.
According to the BP Statistical Review of World Energy, Equatorial Guinea produced 289,000 bpd of oil in 2015, up by 3.3 percent annually.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.