Equatorial Guinea is seeking fresh investment in its oil and gas industry after reducing the number of available exploration blocks from more than 20 to fewer than seven within a year, according to Minister of Mines, Hydrocarbons and Energy Antonio Oburu Ondo.
Speaking at the Global Energy Leaders Forum during African Energy Week in Cape Town, South Africa, the minister said most of the available acreage had been awarded to companies from the United States and Europe, with some Asian firms also securing exploration rights.
“When I was here last year, we had more than 20 blocks available. Today, we have only a handful of them, I believe less than seven,” he said during a panel discussion moderated by Acha Leke, chairman of McKinsey & Company Africa.
The increase in investor interest follows a decision by the ministry in May to allocate exploration acreage through direct negotiations rather than conventional licensing rounds.
Beyond exploration, Mr. Oburu Ondo called for investment from Japan and the United States in the country’s Gas Mega Hub. The initiative consolidates gas resources for processing at the EG LNG facility at Punta Europa, including the Yoyo-Yolanda resource shared with neighbouring Cameroon.
He said there was potential to expand EG LNG’s processing capacity and develop additional gas processing facilities.
“I can see the opportunity here of increasing the processing capacity, not only of EG LNG, but also building different plants,” he said.
The minister also identified the development of liquefied petroleum gas (LPG) storage infrastructure on the mainland as an opportunity for investors. Equatorial Guinea currently depends on a converted vessel for LPG storage.
“One investment that is very clear that can be done is to build LPG storage in the mainland,” he said.
He further disclosed that the EG-27 discovery remained open to potential investors, while discussions with ConocoPhillips were continuing on a non-exclusive basis.
Japanese trading company Marubeni already has a presence in the country’s gas industry, holding a 6.067% stake in EG LNG through its UK-registered subsidiary.
Japan And US Signal Interest In African Energy Investment
Yasuhiro Hashimoto, special adviser to Japan’s minister of economy, trade and industry and the ministry’s chief representative for Africa, said the continent was becoming an increasingly important source of energy supplies for Japan.
He outlined Japan’s strategy for managing supply disruptions, which includes diversifying suppliers, broadening markets and strengthening emergency preparedness. He also emphasised the importance of a stable business environment in building stronger energy partnerships.
The discussions also highlighted the expanding relationship between Equatorial Guinea and the United States in energy investment over the past year.
Joshua Volz, special envoy for global energy integration at the US Department of Energy, said American financing institutions, including the Office of Strategic Capital, were seeking closer partnerships with African downstream energy projects, particularly in refining.
“When the United States takes an equity position in a project, that’s a long-term commitment,” Mr. Volz said.
He added that participation by local investors could strengthen confidence among international financiers. Mr. Oburu Ondo similarly stressed that predictable regulations and legal stability were important for attracting capital into large, long-term energy projects.
“This is the time to capture the momentum,” the minister said, urging Equatorial Guinea to strengthen its reputation as a destination where investors can establish and maintain successful businesses across Africa.