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Equatorial Guinea ratifies new ExxonMobil exploration agreement

By on April 4, 2015

The Ministry of Mines, Industry and Energy of Equatorial Guinea has announced the ratification of Production Sharing Contract (PSC) for ExxonMobil’s oil block EG-06 by the government of Equatorial Guinea.
Block EG-06 is located offshore Bioko Island, adjacent to the international border with Nigeria.

According to a statement issued yesterday by the government of Equatorial Guinea, the contract was signed in January between ExxonMobil Exploration and Production Equatorial Guinea (Offshore) Limited,

GEPetrol and the Government of the Republic of Equatorial Guinea, represented by the Ministry of Mines, Industry and Energy.

Commenting on the ratification, Equatorial Guinea’s Minister of Mines, Industry and Energy, Mr. Gabriel Mbaga Obiang Lima, said the ratification of the new PSC “signifies the start of a new adventure between old acquaintances and is expected to be as successful as the first one.

“The agreement with a supermajor like ExxonMobil is a major vote of confidence on Equatorial Guinea, even as global commodity prices remain depressed. This is added proof that offshore Equatorial Guinea continues to be an appealing jurisdiction for the exploration of hydrocarbons,” he added.

Block EG-06 is located offshore Bioko Island, immediately north of Block R (operated by Ophir Energy) and adjacent to the international border with Nigeria.

The oil block is composed of the areas previously known as D-8, D-9, a portion of C-10, a portion of C-11, B-10, and a portion of B-11.

The ratification instrument marks the commencement of the term of the Production Sharing Contract for Block EG-06 and therefore its enforceability and the start of operations.

As part of the minimum work obligations for this PSC, ExxonMobil has committed to acquire 750 square kilometres of new 3D seismic data and drill at least two wells during the five-year exploration period.

 

[ThisDay]