Equatorial Guinea’s oil and gas sector is set to witness a bumper growth come 2019, with Year of Energy initiative providing impetus for intra-African cooperation; with 11 new oil and gas wells projected to be drilled in 2019, an investment in the region of $2.4 billion; Emphasis is on economic diversification, as witnessed by energy sector growth.

Following a year of recovery in the energy sector and pan-African alliance building, Equatorial Guinea is ready to build on expected new investment and solidify its global standing through its ‘Year of Energy’ campaign. In 2019, Equatorial Guinea will host and promote multiple events to champion its oil and gas projects and promote intra-African cooperation, including flagship events for the African Petroleum Producers’ Organization (APPO) and the Gas Exporting Countries Forum (GECF).

Expected foreign direct investment in oil and gas during 2019 has significantly contributed to improved economic outlook in Equatorial Guinea, with 11 new wells to be drilled. Already, five platforms have been contracted to perform drilling of new wells. These include Greenfield prospects held by ExxonMobil, Kosmos Energy, Marathon Oil and Noble Energy. 2019 has been designated the Year of Energy by the MMH, highlighting the nation’s energy diplomacy in recent years, its investment in sustainable oil and gas sector growth at home, and its support for African oil and gas industry growth through memberships of APPO, GECF and its increasingly visible presence in the Organization for the Petroleum Exporting Countries.

Equatorial Guinea Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima said, “We have been busy in the downturn, working to improve our regulatory environment and attract new investment to the sector. Now that the oil price is at a sustainable level, activity in the oil and gas sector is set to take off at an unprecedented pace. Equatorial Guinea recognizes the importance of working through influential organizations like OPEC and GECF to unite oil and gas producers and empower African countries with a voice on the international stage.”

Equatorial Guinea has made conscious efforts towards making the business environment appealing to international investors, while also protecting the local economy, and has moved up in the World Bank’s Doing Business Index, with particular improvements made during 2018 and 2019. The global report specifically notes a law adopted in 2019 that regulates the mediation of contract disputes and creates a resolution mechanism, and a law from 2018 that eliminated the need to obtain an authorization from the Office of the Prime Minister to start a new business.