Chevron has signed production sharing contracts (PSCs) with Equatorial Guinea stated-owned oil company, GEPetrol and the Ministry of Mines and Hydrocarbons for the exploration, development, and production of offshore blocks in Equatorial Guinea, according to the African Energy Chamber website.
The contracts include provisions on aspects such as minimum investments, exploration programs, sustainable development and benefits for the state, therefore outlining a clear development plan for the assets.
The new PSCs also entail Chevron and GEPetrol’s launching a new exploration and production campaign at EG-06 and EG-11 blocks, previously held by ExxonMobil.
Blocks EG-06 and EG-11, situated near the producing Block B, which houses the Zafiro field, are considered highly prospective and are poised to play a major part in revitalizing exploration and production offshore Equatorial Guinea.
Block EG-11 covers approximately 1,242 km², while Block EG-06 features an oil discovery at the Acestruz-1 well, drilled in 2017.
“The signing of these production sharing contracts between Chevron, GEPetrol, and the Ministry marks a significant milestone in our ongoing efforts to revitalize the upstream sector. This partnership is a testament to Equatorial Guinea’s commitment to enhancing exploration and boosting offshore production. We believe that these investments will bring about a resurgence in our oil and gas industry, contributing significantly to our national economy,” said Antonio Uburu Ondo, Equatorial Guinea’s Minister of Mines and Hydrocarbons.
Notably, Chevron has stakes in three fields in Equatorial Guinea, including the Aseng field, the Alen field and the Yolanda field – located in Block 1.
The company has also been developing the country’s Gas Mega Hub (GMH) project, an initiative that aims to position the country as a central processing hub for stranded gas assets in both domestic and regional markets.
Chevron, through its affiliate in Equatorial Guinea Noble Energy and Marathon Oil, signed in 2023 a Heads of Agreement for the next two phases of the GMH. Phase II includes the processing gas from the Alba field while Phase III processes gas from the Aseng field.
