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Equatorial Guinea’s new oil licensing round means an “open house,”

 

Equatorial Guinea’s new oil licensing round means an “open house,” according to Domingo Mba Esono, the nation’s presidential adviser on mines and hydrocarbons.

The nation offers “attractive terms” for the onshore and offshore licenses, he said today in London.

Investors can submit offers for blocks and don’t have to wait for a new licensing round, Esono said. “There is no fixed period,” he said.

When investors identify an “open block” they are interested in, they can apply for it and negotiate directly with the government, he said.

Two or three weeks ago Korea National Oil Corp. signed a memorandum of understanding with Equatorial Guinea for a block, Esono said. The company will now study the data and consider an offer, he said.

“New concessions have already been granted,” Esono said. Five blocks have been granted since 2009, he said.

Starc Ltd., Glencore AG and OAO Gazprom Neft were awarded concessions, according to Esono.

Investment in the country’s oil and gas sector will increase to $45 billion “in the next few years,” Esono said, from about $35 billion now.

To contact the reporter on this story: Ben Farey in London at bfarey@bloomberg.net

To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net

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