Africa Energy Chamber reports that the new petroleum regulation modernizes Equatorial Guinea’s existing regulatory framework and is intended to maintain the country’s attractiveness for foreign investors.
The petroleum regulation notably covers key matters such as the extension of the productive life of mature fields though mechanisms allowing operators to generate greater value from these assets.
Exploration of marginal and onshore fields along with investments in deep and ultra-deep-water acreages and the monetization of gas and the development of the petrochemicals industry are also the other key areas addressed by the new petroleum regulation.
The petroleum regulation also creates a framework for further integration of the national workforce and local companies across the value-chain.
“This new Petroleum Regulation gives an opportunity to the Republic of Equatorial Guinea to continue being a world reference in the hydrocarbons sector,” declared H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.
The minister for mines and hydrocarbons further explained that for Equatorial Guinea to maintain its position, it must be prepared, with updated norms and policies, to respond to the great challenge that the Covid-19 pandemic will pose for the sector.
The Petroleum regulation notably stipulates that refining, petrochemicals and commercialization activities can be realized under a specific license granted by the MMH on the basis of technical and financial capabilities notably.
Gas flaring, except under very specific circumstances is also prohibited by the new Petroleum regulation.
Under the new petroleum regulation, Field Development and Production Plans must always be designed in such a way as to allow the use, conservation or commercial exploitation of associated gas.
The new Petroleum Regulation is seen as a pillar of Equatorial Guinea’s recovery strategy post Covid-19, and clarifies several aspects of petroleum operations in the country.
It also comes as Equatorial Guinea pushes for additional local participation across the value-chain, and is developing several gas monetization and downstream projects.
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