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Equatorial Guinea expects to attract at least US$1.4 billion worth of direct investment in its oil and gas industry next year, which would be the biggest year of investment in the sector in the small OPEC producer in years.
According to the work program of Equatorial Guinea’s Ministry of Mines and Hydrocarbons, the OPEC producer expects a firm US$1.2 billion and a contingent forecast of US$273 million for 2020, for the drilling of two wells and the continuous development of six existing wells. The ministry reviewed plans and budgets for next year after meetings and technical negotiations with oil and gas firms.
“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,” the Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima, said in a statement.
The investment is expected to go for several oil projects, according to Equatorial Guinea’s ministry of hydrocarbons.
The small central African country on the Atlantic Ocean joined OPEC in 2017, having discovered its oil reserves in 1996.
According to OPEC’s latest available production figures, Equatorial Guinea pumped 134,000 barrels per day (bpd) in November, up by 8,000 bpd from October.
Two offshore discoveries in recent months have given hope to the country that it can attract more investment in its oil and gas sector and boost its oil reserves.
Kosmos Energy made an oil discovery in November, the oil ministry said. A few months earlier, in August, Equatorial Guinea’s hydrocarbons minister Obiang Lima said that Noble Energy had made an offshore discovery. An infield development well was drilled and completed under budget at the Aseng field and first oil production occurred in October 2019, the U.S.-based Noble Energy said last month.
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.