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|
|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|
|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|
Key Trends And Developments:
In June 2015, UK-based Ophir Energy has de-risked its Fortuna floating liquefied natural gas (FLNG) project in Equatorial Guinea. The Fortuna FLNG project will process gas reserves from offshore block R. Front end engineering design (FEED) studies are underway for both the upstream and mid-stream elements of the project, with a final investment decision (FID) expected in mid-2016 and delivery of first gas in mid-2019.
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.
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.
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) FLNG concept.