Equatorial Guinea Sees 2021 Upstream Spend of $1.1bn

Equatorial Guinea is expecting an investment inflow exceeding $1.1bn next year leading to more gas production, according to the African Energy Chamber in a December 21 statement. Of that, $832.4mn is firm and $370mn contingent. Despite Covid-19 pandemic, production held steady at around 282,700 barrels of oil equivalent/day, split almost equally between liquids (146,250 b/d) and gas, according to ministry figures.

Despite the crises of 2020, several such projects are moving forward, including the development of a new gas master plan, the preparations for a new modular refinery at Punta Europa, onshore exploration in the Rio Muni, and the completion by the Saipem Castorone of the laying operations for the Alen gas export line in late 2020.

The Alen export pipeline – it was due in November – means there is now a direct route to carry gas from Alen to Punta Europa, securing sustainable feedstock for EG LNG. At start-up, natural gas sales from the Alen field are expected to be between 200mn and 300mn ft³/day, with the full pipeline capacity set at 950mn ft³/d. "These represent potentially huge quantities of gas that will not only ensure the continued operations at Punta Europa but could further support new gas-based processing and monetisation industries in the future," the statement said. 

However, "significant capital will be required to transform Equatorial Guinea's vision to build an offshore gas mega hub into reality," it said. The aim is to monetise several stranded gas fields across the Gulf of Guinea, including some in Cameroonian and Nigerian waters and whose development will require "skilful negotiations and substantial investment."