In a move to enhance domestic capacity, streamline processes, and position the state-owned companies to better deal with the challenges faced in the oil and gas industry a new hydrocarbon law will be passed in Equatorial Guinea.
Recognizing the realities around building a resilient hydrocarbon sector while dealing with the energy transition, Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, has proposed a National Oil Company (NOC) restructuring process as part of energy industry reform, whereby GEPetrol and SONAGAS will merge into one company.
Speaking at the Leadership Insight Series: Equatorial Guinea webinar on Wednesday the 22nd of September, hosted by the Bilateral Chamber in Houston, H.E. Minister Gabriel Obiang Lima provided insight into the possible NOC restructuring, emphasizing that the Ministry is positioning state-owned enterprises as a driving force of the country’s energy sector growth. With emerging large-scale projects, new sizeable discoveries, and significant infrastructural developments anticipated in the sector, the Ministry has emphasized the role that NOCs will play in accelerating progress.
This move is central to increasing exploration and production and making the NOC into a more integrated energy company that will move beyond its responsibility as state asset manager. The move is likely to see the NOC supporting major efforts toward economic diversification, raising capital to engage in merger and acquisition and operation of assets, at the same time actively driving the energy sector growth in Equatorial Guinea. According to the Minister, the NOC will be a key player in supporting the development of ESG targets in Equatorial Guinea that are transparent, objective, and accessible to IOC partners and other multilateral institutions.
The development of local content and building a workforce that leverages the progress that has been made in the past and restoring oil and gas as an attractive destination for younger people. “H.E. Gabriel Obiang Lima is taking huge steps to advance the country’s oil and gas industry. Having a strong National Oil Company while developing competitive fiscal regimes should be done in concert with other measures, such as fine-tuning local content laws and working to ensure greater government transparency — anything that can be done to make Equatorial Guinea more appealing choices for oil and gas companies is welcomed by the Chamber. NOCs have a valuable role to play in Africa, and Equatorial Guinea should position this new NOC as both a driving force and key facilitator of oil and gas exploration, production, and development. Now is the time to act.” Leoncio Amada NZE; President of the African Energy Chamber, CEMAC Zone and CEO of Apex Industries SA
At African Energy Week (AEW) 2021 in Cape Town, a strong emphasis will be placed on current regulatory and structural reforms taking place across the continent, with a spotlight placed on Equatorial Guinea. Africa is in the process of transforming itself into a highly competitive and growth-oriented energy industry, and there are many lessons to be learned from Equatorial Guinea. Leading an Equatorial Guinean delegation to Cape Town in November, H.E. Minister Gabriel Lima will drive a strong discussion on oil, gas, and reform, promoting the country to international stakeholders and accelerating Africa’s energy progress.
AEW 2021, in partnership with South Africa’s Department of Mineral Resources and Energy DMRE, is the AEC’s annual conference, exhibition and networking event. AEW 2021 unites African energy stakeholders with investors and international partners to drive industry growth and development and promote Africa as the destination for energy investments.