Upstream activities in Equatorial Guinea have been at something of a standstill in recent years with mixed results on development projects and little exploration under way, writes Iain Esau.

Production from mature fields — ExxonMobil’s Zafiro, Marathon Oil’s Alba. plus Kosmos Energy’s Ceiba and Oveng-Okume — continues, augmented by output from Noble Energy’s Aseng and Alen fields.

However, oil output is currently running at 120,000 barrels per day, far less than the peak of 300,000 bpd some years ago, leading to government threats aimed at companies to explore and develop or risk having their acreage withdrawn.

Ophir Energy’s plan to exploit more than 2 trillion cubic feet of gas from its Fortuna asset remains gridlocked, with time running out to make a development decision by the end of this year.

The government’s focus is on maintaining oil production and keeping the Equatorial Guinea Liquefied Natural Gas (EG LNG)complex on Bioko Island running at capacity.

Earlier this year, Noble Energy struck a deal to pipe Alen’s gas — which is currently being reinjected — to the 3.7 million tonnes per annum EG LNG train for use as backfill as output from Alba declines.

A final investment decision is targeted for early 2019, with first gas to flow two years later.

The project involves modifications to the Alen platform and construction of a 65-kilometre pipeline, with sanctioning of the project contingent upon final commercial agreements being executed.

Last month, Noble chief executive Chuck Davidson said Alen was always envisaged as a gas hub because “we’ve already got around 3 trillion cubic feet of discovered resource in the vicinity” in discoveries such as Yolanda and YoYo, although the latter is located across the border in Cameroon waters.

He also said the pipeline would open up opportunities for low-cost exploration in the area.

The EG LNG facility currently receives feedstock gas from Marathon’s Alba field but, with production falling, Alen’s gas offers a backfill opportunity.

Kosmos acquired stakes from Hess in Ceiba, Oveng and Okume this summer, with production averaging about 42,500 bpd of oil in the third quarter.

The installation of electrical submersible pumps to increase artificial lift capacity and enhance production is expected to begin this month.

The government also wants companies to develop long-dormant existing discoveries and get some exploration wells drilled.

Undeveloped discoveries include multiple smaller gas and condensate finds off Bioko and near Alba and Zafiro, plus the Venus, G-13 and Sothis-1 oil finds off mainland Rio Muni.

Kosmos has acquired seismic data over blocks S, W, EG-21 and EG-24 that is being processed with the aim of high-grading prospects for drilling in 2019.

Last month, Gabriel Mbaga Obiang Lima, the country’s Minister of Mines & Hydrocarbons, told reporters that the government plans to launch a licensing round in early 2019 which will cover ultra-deep-water and onshore acreage.

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Equatorial Guinea is pushing for progress