Following a competitive bidding process in Equatorial Guinea’s 2019 licensing round (EGRONDA 2019), Waltersmith Petroman Oil Limited (“Waltersmith”), a Nigerian independent integrated energy company was recently awarded a 40% stake in Block EG-23 located in Equatorial Guinea’s Niger Delta basin.
Waltersmith has also been designated Operator of the asset.
Together with partners Hawtai Energy (HK) Limited (40%) and GEPetrol (the National Oil Company of Equatorial Guinea 20%), a draft PSC has been successfully negotiated and awaiting execution with the Ministry of Mines and Hydrocarbons who doubles as the Concessionaire and the government of Equatorial Guinea.
Block EG-23 has a total area of 592 square kilometers and located offshore in water depths of 50-100m. With significant oil, condensate and gas discoveries confirmed by many exploration and appraisal wells some of which have been production-tested, the block is classified as being in an Appraisal/Development phase.
The Ministry of Mines and Hydrocarbons (MMH) in its website, issued a press release stating that “The Ministry of Mines and Hydrocarbons is pleased to announce the award of 9 Oil and Gas blocks and 15 Mining Blocks to selected companies that participated in the Petroleum Bid and the first Mining Bid in the Republic of Equatorial Guinea (EGRONDA 2019).”
Speaking at the award ceremony, the Minister of Mines and Hydrocarbons, H.E Gabriel Mbega Obiang Lima stated that the EG-23 Block was a very strategic block for the Equatorial Guinea in view of the recently signed MOU for its LNG train, as the gas reserves from the block would be needed for LNG gas supply and expressed confidence in the competence and experience of Waltersmith to deliver on the development of hydrocarbons.
In his response, the Chairman of Waltersmith Petroman Oil Limited, Abdulrazaq Isa, expressed his appreciation to the Government of Equatorial Guinea for having confidence in Waltersmith as a company, and affirmed its readiness to bring its experience and capacity to Equatorial Guinea to accelerate production and extended value creation.
The Production Sharing Contract (PSC) is expected to be ratified by statutory levels of government, the Equatorial Guinea Ministry of Mines and Hydrocarbons and the Equatoguinean Parliament in the coming weeks, followed by final approval by the President of Equatorial Guinea.