Equatorial Guinea signs oil partnerships.
Equatorial Guinea signed oil exploration sharing agreements with Panoro Energy, which will own 56 percent and the management of an offshore block, and the Africa Oil Corporation, the African Energy Chamber (AEC) revealed today.
The contracts, signed by Equatorial Guinea's newly appointed Minister of Mines and Hydrocarbons, Antonio Oburu Ondo, grant London-based Panoro Energy the management and majority in the partnership to explore Block EG-01 and Canada's Africa Oil Corporation two production sharing contracts (PPC) for the blocks, also offshore (drilled below the sea floor), EG-18 and EG-31.
Panoro will work in partnership with the North American Kosmos Energy (24%) and the state oil company from Equatoril Guinea GEPetrol (20%) to carry out studies and identify and define the hydrocarbon reserves available during a period of three years, specifies the press release from the group that works on issues related to oil and gas in African countries.
Panoro Energy Executive Chairman John Hamilton stated that:
“The allocation of this block is a natural and complementary expansion of the presence in Equatorial Guinea, consistent with the exploration strategy focused on infrastructures”.
“It increases our access to ample potential and oil strips at a distance from existing production facilities”, he stressed.
This new contract enhances Panoro Energy's contribution to the growth of the energy sector in Equatorial Guinea, which already plays a crucial role as a partner and operator of the Ceiba field and the Okune complex – which includes six oil and gas wells already in operation .
As for Africa Oil Corporation, the two public-private partnership contracts allow it to enter the Equatorial Guinea market, taking an 80% stake in blocks EG-18 and EG-31, while GEPetrol will hold a 20% stake in each one.
Block EG-31 is strategically located close to existing infrastructure such as the Alba gas field and the onshore liquefied natural gas (LNG) terminal in Punta Europa, which could “consolidate Equatorial Guinea's position in the market" for this fuel, said the president and general director of the Canadian company, Keith Hill, quoted in the statement.
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Picture: © DR
