New product sharing agreement signed between Equatorial Guinea and ExxonMobil Corporation

The Government of the Republic of Equatorial Guinea, represented by the Minister for Mines and Hydrocarbons, has signed on 2nd June, a product sharing agreement (PSA) with the company Exploration and Production Guinea Ecuatorial (Deepwater) Ltd., a subsidiary of the American ExxonMobil Corporation. The contract deals with joint exploration and, in the event, production of a block (EG-11) of deep water located 36 miles to the east of Malabo.

Gabriel Mbega Obiang Lima, in his capacity as Minister for Mines and Hydrocarbons, declared his satisfaction with the signing of the contract because “this contract represents the ambition of the Government in following an effective and efficient policy regarding natural resources, together with the creation of employment, as one of the most important aims to achieve through the signing of this contract”, according to his words. The minister placed emphasis, during the negotiations which took place between the two parties, on the application of the policy of Local Content, because “the best way for the people of the Republic of Equatorial Guinea to participate in the benefits from the hydrocarbons sector in addition to State income, is the creation of jobs and opportunities for national companies”, in accordance with Ministerial Order No. 1/2014 on Local Content, in application of Chapter XX of the Republic of Equatorial Guinea Hydrocarbons Law.

For his part, Steve Greenlee, president of ExxonMobil Exploration Company, said: “We hope to develop more than 20 years of assured operations in Equatorial Guinea through this new high-quality exploration opportunity”, and later added that “we are very happy to add block EG-11 to our overall deep-water position and increase the value of our significant business in Equatorial Guinea”.

The EG-11 deep-water block measures approximately 1,242 square kilometres, and is next to the Zafiro field located in block B.

Source: Official Web Page of the Government of the Republic of Equatorial Guinea

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