Cape Town, Sept. 25, 2025 (Lusa) - Equatorial Guinea's Minister of Hydrocarbons and Mining Development said he intends to usher in "a new era" in the oil sector on Monday when he announces the new round of oil exploration licences.
"The EG 2026 licensing cycle represents a crucial step towards maximising Equatorial Guinea's offshore and onshore potential; it will attract renowned investors, stimulate exploration and promote sustainable growth," said Antonio Oburu Ondo on Wednesday.
The announcement will be made during African Energy Week (AEW), during which Equatorial Guinea will present a series of new developments to convince investors to invest in the country.
"We are committed to offering world-class fiscal and regulatory conditions to support this development," said Oburu Ondo, quoted in a statement from the African Energy Chamber, the organiser of the event taking place next week in Cape Town, South Africa.
"In regulatory terms, Equatorial Guinea aims to be globally competitive; the main regimes have recently been revised or are being optimised," said the minister, adding that the upcoming reform of the sector will allow "better conditions for investors, namely faster cost recovery and greater profit sharing, among other favourable provisions".
In its presentation on Monday, the first day of the AEW, Equatorial Guinea will emphasise that the cycle of new licence awards starting in 2026 will be "the official platform to usher in a new wave of investment and exploration success in Equatorial Guinea," which is trying to offset a decline in production in recent years.
"This cycle will offer opportunities in new areas to explore proven and innovative deposits at moderate depths, supported by first-rate fiscal measures and increasingly attractive conditions," Minister Oburu Ondo said in the statement.
Equatorial Guinea is carrying out a series of preparatory activities, including a complete reprocessing campaign of current oil wells and in the most promising areas, to present the latest data to interested investors.
Equatorial Guinea's offshore geology is characterised by hydrocarbon-rich sedimentary basins in deep and shallow waters, with significant potential in both proven fields and underexplored frontier areas, especially in deep waters, say AEW organisers.
Equatorial Guinea was once the third largest oil producer in sub-Saharan Africa, after Nigeria and Angola, pumping around 50,000 barrels per day, well below the 400,000 it produced in 2004 at the peak of production.
With frequent economic recessions over the last decade, the country completed a technical advisory programme from the International Monetary Fund (IMF) in June and is negotiating an extension for a further 12 months.
Last year, this member country of the Community of Portuguese Language Countries (CPLP) recorded economic growth of 1.9%, which was not enough to recover from the sharp recession of 5.1% recorded in the previous year, and this year the IMF forecasts a new recession of 4.2%.
"The macroeconomic environment remains challenging, particularly because of the continued decline in hydrocarbon production, which is putting constant pressure on public accounts," the IMF said in June.
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