BMI View: Equatorial Guinea's oil output will continue to see marginal gains in 2015 on the back of several smaller projects. However, maturing fields and lack of new significant discoveries will continue to push the production volumes lower after 2015. Nonetheless, we note an upside risk to our forecast , due to increasing investor interest in West Africa's offshore potential, especially in the new lower oil price environment, as oil companies are starting to look for lower-risk and lower-cost ventures.
|Crude, NGPL & other liquids prod, '000b/d||290.8||345.8||358.3||352.4||350.2||348.0||346.0|
|Refined products production & ethanol, '000b/d||3.8||3.8||4.0||4.2||4.4||4.6||4.8|
|Refined products consumption & ethanol, '000b/d||2.3||2.8||2.6||2.6||2.6||2.6||2.7|
|Dry natural gas production, bcm||6.7||6.5||6.3||6.2||6.4||6.5||8.2|
|Dry natural gas consumption, bcm||1.7||1.6||1.5||1.4||1.4||1.4||1.4|
Key Trends And Developments:
In April 2015, Equatorial Guinea supported African Petroleum Producers Association member countries in a joint action to reduce oil production and stabilise the market. 'We have supported these initiatives that allow us to study how to jointly stabilise prices in the future,' stated Minister of Mines, Industry and Energy of Equatorial Guinea Gabriel Mbega Obiang Lima (Your Oil and Gas News).
In mid-January 2015, the Equatoguinean government ratified the production sharing contract for Block EG-06, signed with ExxonMobil and GEPetrol.
In early January 2015, Nigeria-based energy firm Taleveras Group entered an agreement with the Equatorial Guinea government to construct an oil storage hub at Punta Europa on the island of Bioko. The facility will have a total capacity of 1.34mn tonnes of storage for crude oil and products including gasoline, naphtha, jet fuel and fuel oil. The storage facility will be the largest crude and products storage facility in Africa.
In November 2014, UK-based Ophir Energy agreed fiscal terms for its Block R gas production sharing contract (PSC) in Equatorial Guinea with the country's Ministry of Mines, Industry and Energy. The amendment establishes gas fiscal terms within the PSC and a fiscal system for the floating liquefied natural gas operation. Upstream front-end engineering design is planned for early 2015 with first gas expected in 2019.
In October 2014, Ophir Energy announced a successful drill stem test (DST) on the Fortuna-2 well in Block R, Equatorial Guinea. The well achieved a sustained flow rate of 1.69mn standard cubic metres per day (Mscm/d), with a drawdown of less than 20 psi at the reservoir. 'This excellent flow rate confirms the deliverability of the first phase Fortuna development and completes the subsurface de-risking prior to FEED,' said CEO Nick Cooper.
In September 2014, Ophir Energy announced a discovery at its Silenus East-1 well in Block R. The company has estimated a mean recoverable gas volume of 11.34bn cubic metres (bcm), helping to de-risk the wider Silenus area to 33.6bcm. Ophir now estimates total mean recoverable gas resources in Block R, including the Fortuna, Silenus and Tonel complexes, at 95.2bcm, which should be sufficient to support the company's larger 3mn tonnes per annum (4.1bcm) floating liquefied natural gas (FLNG) concept.
China National Offshore Oil Corporation (CNC) was planning to start drilling a deepwater well offshore Equatorial Guinea in August 2014. Although no details were disclosed, drilling will most probably be located in the 2,287km sq offshore Block S, for which CNC signed a PSC with Equatorial Guinea in 2006. The producing Ceiba field is located nearby.