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Equatorial Guinea: Mineral Industry Overview – posted by www.equatorialguineaonline.com

posted by www.equatorialguineaonline.com

Offshore oil and natural gas production dominated Equatorial Guinea’s mineral industry. Most of Equatorial Guinea’s hydrocarbon production was exported; some of the liquefied petroleum gas (lPG) output was consumed locally. Clay, gravel, sand, and volcanic rock output was used by the domestic construction sector.

Mineral resources are the property of the Government. Mineral exploration and production activity are governed by law no. 9/2006, which is the Mining law, and law no. 8/2006, which is the Hydrocarbon law. Contracts for hydrocarbon exploration and production are administered by the Ministerio de Minas, industria y Energia. law no. 7/2003 and amendments form the Environmental law.

Structure of the Mineral Industry

Hydrocarbon exploration and production activity was governed by production-sharing contracts held by joint ventures of international oil companies and the Government. Guinea Ecuatorial de Petróleos (GEPetrol), which was the national oil company, operated some exploration-stage production-sharing contracts and managed the state’s interest in other crude oil exploration and production contracts. Sociedad nacional de Gas de Guinea Ecuatorial (Sonagas), which was the Government’s natural gas company, managed the Government’s interest in products derived from natural gas output, such as liquefied natural gas (lnG), lPG, and methanol.

Natural Gas and Petroleum

Exxon Mobil Corp. reported that crude oil production from the Zafiro field on Block B again decreased compared with that of previous years. in 2010, crude oil production decreased by about 4% compared with that of 2009 and was about 51% that of 2006. after additional drilling and production well completions that increased production from the Zafiro field in 2004, ExxonMobil reported annual double-digit decline rates from the field until 2007. Mobil from Block B of the Zafiro  Development Area (Exxon Mobil Corp., 2008; 2011).

In 2010,  Hess Corp. (2011) of the United States reported a slight (1%) decrease in crude oil output from the Ceiba Field and okume Complex and Marathon oil Corp. (2011, p. 13) of the united States reported that the sale of condensate from the Alba natural gas field decreased by about 11% in 2010 compared with that of 2009. Natural gas from the Alba field was stripped of condensate and lPG at the alba plant. The lnG plant and the methanol plant used portions of the resultant dry gas (after the extraction of the liquids) as feedstock. Any remaining gas was piped back to the Alba field and reinjected. In 2010, Noble Energy Inc. of the United States drilled 5 production wells and 3 water-injection wells on the aseng prospect on Block i. a 120,000-barrel-per-day (bbl/d)-capacity floating production, storage, and offloading (FPSO) vessel was under construction and was expected to be onsite in 2012. Noble also planned to develop the Alen condensate and natural gas project (formerly the Belinda prospect), with initial production to begin in 2013 (Noble Energy Inc., 2011).

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