ExxonMobil acquires deepwater acreage in Equatorial Guinea

16326819629 39b8bbfc8f zOffshore Equatorial Guinea has a long history of oil production. (Image Source: Ben Suitherland/Flickr)

The government of Equatorial Guinea has signed a production sharing contract (PSC) with ExxonMobil's affiliate, Exploration and Production Equatorial Guinea (Deepwater)

This PSC is the next step in developing oil resources in Block EG-11, a deepwater block located 36 miles west of Malabo. The block measures approximately 307,000 acres (1,242 square kilometres) and is adjacent to the Zafiro field in Block B.

Once the PSC is ratified by the government, ExxonMobil will be the operator with an 80 per cent working interest. GEPetrol holds a further 20 per cent working interest. The PSC includes a commitment to acquire new 3D data and re-process data from existing seismic surveys. 

Local content is another important part of the PSC and, as such, ExxonMobil has undertaken to further develop the local workforce. The company has had a presence in Equatorial Guinea for more than 20 years. This includes a 71.25 per cent interest in the Zafiro field. GEPetrol has a 23.75 per cent stake and the government has the remaining 5 per cent. Zafiro is in water depths between 400 and 2,800 feet and has produced more than 1bn barrel of oil.

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