EQUATORIAL GUINEA 2018 - Africa Energy Series - Africa Oil & Power
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Africa Energy Series EQUATORIAL GUINEA A COMPLETE REPORT ON INVESTING IN THE ENERGY SECTOR OF EQUATORIAL GUINEA 2018
EXPECT
MORE Equatorial Guinea has come
a long way in 50 years.
ENERGY
GEPetrol and its subsidiaries are
creating the businesses, operating
the assets and training the people
that will take us much further.
50 years of independence | Excellence in oil and gas
Africa Energy Series | Equatorial Guinea
AFRICA ENERGY SERIES
Equatorial Guinea 2018
With thanks to H.E. Minister of Mines and
Hydrocarbons Gabriel Mbaga Obiang Lima and the
officials of the Ministry of Mines and Hydrocarbons
for their endorsement of this report and for
providing information.
Africa Energy Series:
Equatorial Guinea 2018 is published
by Africa Oil & Power with content and design by
Africa Branding Corporation.
Published May 2018.
Launched at the AOP Investor Forum conference
on May 10 in London.
www.africaoilandpower.com
Africa Oil & Power wishes to thank all the
companies and individuals that supported this
publication by providing pictures and facilitating
the compilation of this book:
Presidency of the Republic of Equatorial Guinea
Ministry of Industry and Energy
Ministry of Tourism
Centurion Law Group
Marathon Oil Corporation
Noble Energy
AMPCO
CMEC
Synohydro
SEGESA
ADGE
Luba Freeport
With special thanks to Santiago Olo Lima,
Centurion Law Group, for his invaluable support
in Malabo.
Production team:
Chief Executive Officer
Guillaume Doane
Creative Director
Giovanni Trevisson
Managing Editor
James Chester
VP Business Development
Declan Byrne
Commercial Director
Kelly Mealia
Production Manager (AOP)
Aydanur Akkurt
Account Executives
Florencia Icardi
Isabella Fragoso
Editors
Caty Hirst
CMEC’s projects create the foundations for
Mandisa Nduli Equatorial Guinea’s economy.
Contributor
We are proud to work with the Government
João Marques Credit: Ministry of Tourism of the Republic of Equatorial Guinea to build
a bright future. www.cmec.com
1 2
RE-ENERGIZING
Africa Energy Series
OIL & GAS
CONTENTS FIELDS
09
STATE STATE
OF THE NATION OF THE INDUSTRY
11 35
12 FOR A STRONGER 36 A NEW PATH
EQUATORIAL GUINEA 39 TIMELINE: TWO DECADES IN
15 TIMELINE: EQUATORIAL GUINEA PETROLEUM
STEPS INTO THE SPOTLIGHT 41 EQUATORIAL GUINEA ACREAGE
17 GUARANTEED FUTURE MAPS 1997 and 2017
Interview with H.E. Teodoro Obiang 43 THE STATE ACTOR
Nguema Mbasogo, President Profile: GEPetrol
19 CHAMPION OF A 45 GAS GOES TO NEW PLACES
DIVERSE ECONOMY Profile: LNG2Africa
Interview with H.E. Teodoro Obiang 46 CUSTODIAN OF GAS RESOURCES
A MESSAGE FROM Nguema Mbasogo, First Vice President Profile: Sonagas
21 FOR THE GOOD
47
OF THE COUNTRY
H.E. Interview with H.E. Francisco Pascual
Obama Asue, Prime Minister
TEODORO 23 THE NEW CENTER
OF AFRICAN ENERGY
OBIANG Interview with H.E. Gabriel M. Obiang
Lima, Minister of Mines and Hydrocarbons A VOICE
NGUEMA 27 A GENERATION LEAP
Interview with H.E. Miguel Ekua Ondo,
MBASOGO 29
Minister of Industry and Energy
FAST MOVERS THAT
President of the Republic
Interview with H.E. Atanasio Ela
Ntugu Nsa, former Minister of Mines, CAN BE TRIDENT ENERGY
brings 100 years of
of Equatorial Guinea
31
Industry and Energy
RESPONSIBILITY HEARD
international oil & gas
TO THE PEOPLE
Interview with H.E. Juan Olo Mba 49 ENERGY OPENS DOORS
Nseng, former Minister of Mines, Interview with César Hinestrosa Gómez
33
Industry and Energy
AFRICAN ENERGY DIPLOMACY
Energy-related agreements with
51
Secretary of State, MIE
THE LIGHTS ARE ON
Profile: SEGESA
experience
regional partners 53 PORTS OF WEST AFRICA
3 Trident Energy T: +44 20 3879 9171
129 Wilton Road, London, SW1V 1JZ. E: enquiries@trident-energy.com www.trident-energy.com
Africa Energy Series
NATIONAL PROJECTS OPEN
COMPANIES IN PROGRESS FOR BUSINESS
55 73 83
56 THE LOCAL CAPACITY 74 GAS FOCUSED PROJECTS 84 CENTRAL AFRICAN BUSINESS
IMPERATIVE 75 DOMESTIC LNG DISTRICT
59 THE DOMESTIC LNG Profile: Local LNG usage 85 ALL TOGETHER IN CENTRAL
REVOLUTION 76 THE GAS MEGAHUB AFRICA
Interview: Elite Construcciones Profile: New gas infrastructure 87 THE RISE OF ENTREPRENEURS
Interview: CCEI Bank GE
88 LEGAL FRAMEWORK
61 77 Resource: Centurion Law Group
89 BUSINESS
Rely on a network
that’s as driven
WORKS WHEN
LOCAL
CONTENT
and technologically
advanced as your
YOU’RE BETTER
POLICY business. CONNECTED
62 ANCHORED HERE SINCE 1969
Interview: Besora Marítima
63 FLAG CARRIER Connect with
A BANK IN Equatorial Guinea’s
Interview: Ceiba Intercontinental
65 VITAL SUPPORT SERVICE
67
Profile: Shree Hari Group
NATIONAL CONTEXT LNG AND EVERY CITY national telecoms
provider GETESA.
FLOATING
Profile: Grupo Memba Interview: BANGE
68 LOCAL CAPACITY BUILDERS
LNG
Interview: Equatorial Consolidated 93 TOWARDS A STABLE
Group ENERGY SECTOR
69 THREE DECADES
OF CONNECTIONS
Interview: GETESA
PROJECTS 95
Interview: Centurion Law Group
DOING BUSINESS: BANKS AND
PROFESSIONAL SERVICES
71 THE LOCAL FPSO OPERATOR 79 FORTUNA FLOATING LNG Profiles: Ecobank, BGFIBank,
Profile: GEPsing Resource: Ophir Energy’s FLNG project EY and PwC
72 ON THE CONSUMER SIDE 81 BIOKO OIL TERMINAL 97 RESOURCE MANAGEMENT
Interview: GEPetrol Servicios Profile: Regional storage hub Resource: LI&P
www.getesaeg.gq
5
Africa Energy Series
CAPE TOWN
EXPLORERS SEPT 05-07
123 MORE TO DISCOVER 141 ON TIME, ON SITE
Interview: Trident Energy Profile: Meakin Logistics
125 BEYOND NATIONAL RESOURCES 143 WORKFLOWS AND
AFRICA’S
Timeline: GEPetrol TECHNOLOGY TO MAXIMIZE
FIELD PERFORMANCE
99
127 HARNESSING THE POWER
OF OIL AND GAS Article: Schlumberger
Interview: Noble Energy 145 WELLS TO WHEELS
Profile: Total
ELITE
146 BRIDGING GAS AND POWER
129 147
Profile: GEMS
RELEASE NEW POTENTIAL
Profile: OneLNG
ENERGY
100
101
EXPLORE SOME MORE
THE SEARCH FOR EXPLORERS
VALUE CHAIN
102 PULL OUT MAP
Resource: Licenses map
103 FLNG: THE KEY TO UNLOCKING
AFRICAN GAS SUSTAINABLE
PRODUCTION
ENERGY
Interview: Ophir Energy
105 DIVERSE PROSPECTS ACROSS
149
Interview: Marathon Oil
THREE BASINS
Resource: Basins map 131 FROM THE GAS FIELD TO THE
EVENT
107 UNLOCKING THE RIO MUNI GLOBAL MARKET
BASIN Timeline: Alba field development
Interview: Kosmos Energy
109 A WELL PLACED ASSET
111
Profile: RoyalGate Energy
SURPRISING GEOLOGY INTERNATIONAL
Interview: G3 Oleo e Gas
INVESTORS
150 EXTEND THE VALUE CHAIN
PRODUCERS 152 BUILD THIS COUNTRY ON GAS
Interview: Julián Abia Biteo May
Presidential Advisor on Petrochemicals
153 GATEWAY FOR NATURAL GAS
133
Resource: Punta Europa
157 DETERMINING THE FLOW
Interview: Sinohydro
159 SOURCE OF UNLIMITED POWER
113
Timeline: Sinohydro
161 THE STATE OF POWER
Map: Power infrastructure
163 YEAR OF THE CEIBA
Profile: CMEC
165 GET MORE FROM GAS
REGISTER ONLINE
166 THE WATER IS WELCOMING
Interview: Duglas Alliance Regional and national energy
134 THE DEALS THAT BUILD THE
PETROLEUM SECTOR
and finance conferences
135 ENTRY BY ACQUISITION
Article: Shell 167 Government and market consultancy
115 A COMPLEX PRODUCTION 137 INVITATION TO ENTER HISTORY
119 LIFEBLOOD OF THE ECONOMY Interview: Aquiles Nach Dueso, MMH Investment outreach
121
Profile: ExxonMobil
THE AFRICAN EXPLORER 139
Head of Legal Section
LUBA FREEPORT
(licensing rounds, roadshows, press conferences)
Profile: Atlas Petroleum International Profile: Deepwater oil and gas port LIST OF NATIONAL COMPANIES
www.africaoilandpower.com Strategic communications
7
A MESSAGE FROM
H.E. TEODORO OBIANG NGUEMA MBASOGO
PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA
Equatorial Guinea is a country of great wealth:
rich in natural resources, diverse in its island, mainland and marine territories,
and located in the Gulf of Guinea, a region
of astonishing potential for economic growth.
On this, the 50th anniversary of our independence,
we celebrate the achievements of our people
over the last half century, and the gift of our abundant land.
In this golden jubilee year, we look back at some of the most momentous
dates in the history of Equatorial Guinea. Thirty five years ago, in 1983, we made
our first discovery of hydrocarbons. Just over a decade later, in 1995, we made the
transformational discovery of the Zafiro field. In the years that followed, we built
our downstream industry, including methanol and LNG plants.
Together we have explored the ocean depths and used our national resources
to build a prosperous Equatorial Guinea.
In 2018 we recognize the enormous contribution of the people and the companies
that have committed themselves to building a stronger Equatorial Guinea. I
am pleased to present the Africa Energy Series: Equatorial Guinea 2018
publication as the official book celebrating the 50th Independence Anniversary of
Equatorial Guinea and detailing its energy industry accomplishments.
What we have achieved in just 50 years
is remarkable in Africa and the world.
Looking to the next fifty years, the future is bright for
our nation and its petroleum industry.
Credit: Jeremy Pollard
Africa Energy Series | Equatorial Guinea
Article
FOR A STRONGER
EQUATORIAL GUINEA
Over the years, Equatorial Yet, the country and its inhabitants percent of exports. It is no surprise that
Guinea has been making remained poor, and isolated from the the economy suffered deeply with the
broader international community. Re- collapse in oil prices. In two years GDP
its way towards economic ality in the Central African nation today contracted by 50 percent.
prosperity. Now celebrating contrasts sharply with the earlier years However, those 20 years of economic
of its independence. Everything was to
its 50th year anniversary
STATE of independence, the small
change in 1995. bliss were not wasted. After all, oil pro-
duction peaked in 2004, ten years before
OF THE The big change the great oil price crisis. Equatorial Guin-
nation continues to strive ea’s political leaders were very aware of
forward. the risks involved in being so exclusively
NATION
It is hard to understand how it took so
dependent on such a volatile commodity.
long. After all, Gabon, to the south, had
It is no secret that Equatorial Guinea’s started to produce oil in the 1930s. Ni-
economic expansion is very recent in na- geria, to the north, became an oil produc- Infrastructure boom
ture. Up until the 1990s very few house- er in 1958, and neighbouring Cameroon
holds had access to electricity. In the drew first oil in 1977. Yet, the oil dream With oil money pouring into the state’s
years following independence from Spain escaped Equatorial Guinea for too long. coffers, Equatorial Guinea had the
in 1968, instability caused the economy Flares illuminated the distant horizon in means to move towards a modern econ-
to develop slowly. every direction from Bioko Island, and omy, and first came power.
yet, there was next to no electricity in
The leadership of the country’s first Malabo. If in the 1990s the whole country had
president Francisco Macías Nguema a generation capacity of no more than
caused most of the country’s skilled local A glimpse of what was to come took 6 MW, the opening of three large-scale
and foreign workers to flee and drove place in 1990, when Walter Internation- power generation plants during the
the vast majority to poverty. The cocoa, al found commercial amounts of gas con- 2000s multiplied that capacity by ten-
timber and coffee industries, which had densate in the Alba field. However, the fold. It would grow again five-fold during
been extremely profitable under Spanish real transformation started with Mobil’s the first years of the 2010s.
rule, faded to almost non-existence. discovery of Zafiro, in 1995, to this day
the biggest oilfield found in Equatorial Available power allowed for the develop-
In 1979 Teodoro Obiang Nguema Mba- Guinea’s territory. ment of industries, public services, edu-
sogo, Equatorial Guinea’s current pres- cation facilities, infrastructure and the
ident, took power. The coming years By 1996, crude oil exports started im- like. Thousands of kilometers of roads
brought a more stable political outlook pacting the nation’s coffers. Gross do- now connect villages, towns and indus-
to the country. By 1983, a more open ap- mestic product grew from $140 million tries in both Bioko Island and Rio Muni.
proach to international cooperation saw in 1995 to $230 million in 1996. By the Power transmission lines run besides
Equatorial Guinea integrating into the year 2000, the economy output was val- the tarmac across the country. Access
Economic Community of Central African ued at $1 billion for the first time in its to housing, potable water and basic ser-
States (CEMAC), forming close ties with history. At its peak, just before the 2014 vices, including electricity, are now wide-
Cameroon, the Central African Republic, oil price fall, Equatorial Guinea’s econo- spread. High-end hospitals, soccer sta-
Chad, the Republic of Congo and Gabon, my was worth around $22 billion a year, diums, market places and police stations
CEMAC’s other members. with oil and gas accounting for over 95 are a regular sight in communities across
12
Article
Equatorial Guinea. Across the economic number of tourists visiting the Central Other extractive industries such as min-
spectrum, private actors have jumped on African nation, coming for business or for ing of gold, diamonds, coltan and bauxite
the new opportunities emerging from the rapidly expanding eco-tourism sector. are all abundant in Equatorial Guinea
this infrastructural growth, including but remain underdeveloped. An indus-
the digitization of the economy. While Combined, these and other develop- try based on the processing of these
Internet penetration remains limited, ments were part of a governmental resources, rather than the export of the
the country’s link up with the African structural vision aimed at developing the raw materials, will have extensive impact
Coast to Europe submarine communica- base for the construction of a new econ- in the country’s economic fabric, em-
tion cable, along with other information omy in the country. ploying thousands and bringing wealth
technology infrastructure investments, to the country.
is quickly changing that reality.
A vision for the future
The banking sector has started to di-
No other document encapsulates the
Equatorial Guinea
versify its services, offering e-banking
efforts to diversify Equatorial Guinea’s and the world
alternatives and breaking international
economy like the Horizon 2020 National
agreements to facilitate cross-border
Plan for Economic and Social Develop- After many years of relative isolation,
transactions. The tourism sector, which
ment. The program, launched by Presi- Equatorial Guinea’s growing wealth also
despite Equatorial Guinea’s extensive
dent Obiang in 2007, is a master plan to made its leaders more aware of the im-
natural attractions remains underdevel-
elevate Equatorial Guinea to an emerg- portance of affirming the country’s place
oped, is also picking up. Over the last de-
ing economy status by the year 2020. in the international arena.
cade, high-end international hotel brands
The key strokes of the vision are defined
such as Hilton and Sofitel have open
by four pillars; building high-end infra- Although its is a majority Spanish-speak-
doors in Malabo and elsewhere in Equa-
structure; investing in human capital and ing nation, it made strides to integrate
torial Guinea. Combined with lower bud-
raising the quality of life of the general into regional language based trading
get hotels, they are catering to a growing
population; diversifying the economy groups such as the Francophonie and
through the private sector, and institut- the Community of Portuguese Language
ing good governance. States. It is in negotiations to also join the
British Commonwealth. In 2008, Equa-
First it focused on the use of available torial Guinea joined the Gas Exporting
resources and a new natural gas-based Countries Forum and just recently in
economy was to be created. Once an un- 2017, it joined the Organization of Pe-
used resource, Equatorial Guinea now troleum Exporting Countries, giving it
exports 3.4 million metric tonnes per an ever-stronger voice within the global
annum of liquefied natural gas, has an es- energy industry.
tablished methanol industry, is building
a natural gas-based petrochemical in- Under the banner of energy cooperation,
dustry and already produces nearly half Equatoguinean leaders have pursued
of its electricity from gas-fired power partnerships with Ghana, Togo, Mozam-
plants. As its power generation capacity bique, Burkina Faso, Cameroon, Nigeria,
expands, coming from a nearly-conclud- Uganda and South Sudan. In 2011, the
ed 200 MW hydropower plant and a country took over the presidency of the If you’re planning to start a business
planned 100 MW natural gas-fired plant, African Union for the first time and has or expand your enterprise in Africa,
Equatorial Guinea will quickly achieve since engaged in bilateral cooperations Centurion Law Group aims to become place your trust in our knowledge and
100-percent access to electricity for aimed at reinforcing intra-African trade Africa’s leading corporate law firm. experience.
its citizens, a goal that is central to the and cooperation.
country’s vision and a first for any nation Operating at the cutting edge of business Centurion Law Group provides
As Equatorial Guinea turns fifty, the fu-
practices today, we stand ready to full-scope legal, tax, government
in Sub-Saharan Africa. Further, its new
provide a full suite of legal services to relations and management advice for
generation capacity will make it able to ture seems bright and full of potential.
new, expanding and established African starting and operating your business in
export vast amounts of electricity to en- The country continues its path towards businesses. Africa.
ergy-deprived neighbours such as Cam- becoming an emerging economy and
eroon and Gabon, with which the nation- providing education, infrastructure and
al grid already has interconnections. opportunity to its people.
Contact Centurion today.
T: +27 11 245 59 00
www.centurionlawfirm.com
13
Africa Energy Series | Equatorial Guinea
Timeline
1979 1983 CEMAC accession
Leadership change
1968 Equatorial Guinea becomes a mem-
EQUATORIAL GUINEA Independence Teodoro Obiang
Nguema Mbasogo
ber of the Economic Community of
Central African States (CEMAC),
STEPS INTO
Equatorial Guinea gains inde- rises to power after joining Cameroon, the Central Afri-
pendence from the Spanish ousting Macias Nguema. can Republic, Chad, the Republic of
monarchy and Francisco Congo and Gabon.
THE SPOTLIGHT Macias Nguema becomes the
country’s first president.
1996 1990
Presidential elections Commercial gas
discovery
In the country’s first presiden-
1993 The Alba exploration
tial election, President Obiang
Parliamentary acreage, which had seen
Nguema achieves a resounding
elections gas discoveries in the
victory, winning with over 97%
2004 1980s and had been
of all votes.
Oil production peaks For the first time since deemed non-commer-
1991 cial, is licensed to Walter
1995 independence, parliamen-
Gas production International, which
Equatorial Guinea reaches an all Oil production debut Oil discovery tary democratic elections
time high level of oil production are held in Equatorial discovers significant gas
at 393,000 barrels of oil per day, Guinea, in which the Production of gas accumulations.
Oil production starts at the US company Mobil discov-
the third highest in Africa. Since Zafiro field, a major step into ers oil reserves in excess Democratic Party of condensate commences
then production has steadily an industry that will change of one billion barrels at the Equatorial Guinea wins from two wells in the
declined. Equatorial Guinea forever. Zafiro field. the majority of votes. Alba field.
2007
Economic growth 2016
Re-election
Equatorial Guinea becomes one
of Africa’s and the world’s richest President Obiang Nguema
countries, according to GDP per strengthened his position in power
capita, as income from oil exports 2011 when he won a fifth term in the
continue to rise. African Union leadership presidential elections, taking over
93% of the votes. He is expected
Horizon 2020 2008 Equatorial Guinea takes over 2012 to remain in power until 2023.
Life science award chairmanship of the African Environmental
President Teodoro Obiang Union. Months later, the stewardship 2017
Nguema Mbasogo launches the UNESCO accepts Pres- president hosts the African Joining OPEC
Horizon 2020 plan, designed to ident Obiang Nguema’s Union’s annual summit in Ma- Equatorial Guinea, along with nine other
drive Equatorial Guinea toward offer to sponsor an labo. During the event, the 53 nations with the support of the United Equatorial Guinea joins the world’s
becoming a diverse and emerg- award, named after him- heads of state design a road- Nations, agree on a regional initiative largest oil producers in the Organi-
ing economy by 2020. self, for achievements in map to help Libya emerge to monitor the Congo Basin, one of the zation of the Petroleum Exporting
life sciences. from its civil war. world’s most important rainforests. Countries.
15 16Africa Energy Series | Equatorial Guinea
Interview
What are the key achievements of We have indeed overcome a lot of the with the United States, China, Russia,
Equatorial Guinea in the energy deficiencies that we had before. We now African countries and other global
sector in the last 50 years? have the knowledge to operate at a high partners?
level in the gas sector. We now have the
In Equatorial Guinea, we believe that the financial resources, the human resources Equatorial Guinea’s policy is to maintain
petroleum reserves in the country are a and the know-how to exploit our own gas good relations with countries around the
blessing. Other countries may see petro- reserves without needing to outsource world. We do not want divergences be-
leum as a curse because it has been mis- this to other countries. We know by now cause they do not contribute to anything.
used. Our country was once the poorest the importance of oil and gas, so we want Traditionally the world was divided be-
on the continent but today, thanks to the to make sure that in the future we can use tween the East and the West, but we don’t
petroleum industry, we are among the our natural resources in the country itself. think this is favorable for developing coun-
wealthiest. We can be proud of the fact tries like Equatorial Guinea. Russia and
that we have achieved that. What can other oil and gas exploring China have helped us a lot with regards
and producing countries on the to the education of our workforce and in
Petroleum has undoubtedly transformed continent learn from Equatorial economic growth. But we have been very
the economy of this country. In the past, Guinea, and what have you learned careful to maintain a careful equilibrium
Equatorial Guinea suffered a lot of difficul- from other countries? between Eastern and Western countries
ties and had to receive financial emergency to make sure there is no divergence be-
aid from the International Monetary Fund, We have learned from other companies, tween our positions towards our partners
but we have been able to instead become but we really educated ourselves along- and that the balance of power is fair.
one of the fastest emerging countries of side the companies that came to work here
Africa. We will not need the financial aid and followed our lead in developing the Looking to the future, what other
anymore. This has been a very positive de- industry. Nowadays, we can assist other industries and sectors are you
velopment for the country, and it is due to countries. At the moment, we are working prioritizing?
the petroleum industry. with South Sudan and Uganda to provide
assistance at their request. I think a lot of When we look towards 2020 or 2030, that
How has the government been able African countries can benefit from our ex- would be the horizon for the industrializa-
to effectively use Equatorial Guinea’s perience, and we are able to help them. tion of the country. For the primary sector,
oil and gas resources to develop the
GUARANTEED economy? To what degree will greater access
which is agriculture, we would like to see
this industrialized in a way that we could
to education influence the future of
FUTURE Equatorial Guinea is not the richest na- Equatorial Guinea’s people and its oil
use all our natural resources and benefit
from greater food security. This is anoth-
tion, but we did know how to plan the and gas sector? er pillar of the self-sufficiency that we are
use of our resources very well. When we working towards. It will also make sure we
knew we were going to produce oil, the For me, education is key. When a coun- are able to grow our currency reserves and
first thing we did was to involve the entire try does not have enough professionals, not use them for imports.
government, the opposition parties and it cannot guarantee future development
the non-governmental organizations to and projects, because you need technical What three key developments of
work on a development plan for Equatorial and scientific knowledge for that. We are recent years have contributed most
Guinea. This was done via an economic fo- where we are right now due to the fact to the growth and development of the
rum, where we planned the development that we have offered the right education country?
of the country in the short term, medium to our youth. Young people can go to oth-
term and long term. The objective was er countries to get their education, but we First of all, peace. Without peace, we could
that by 2020 the country needed to be have now also opened several centers of have never attained the level of develop-
His Excellency self-supporting. Due to the low price of oil education in the country. We have sever- ment we have right now. Next to that, it
Teodoro Obiang Nguema Mbasogo in the international market in recent years, al universities and soon we will open an was very important to reconcile the differ-
President of the Republic we will need to adjust the plan to whatever institution to educate people to take man- ent parties and make sure there was soli-
of Equatorial Guinea our policymakers believe is reasonable and agerial positions in the oil and gas sec- darity among the people and no distinction
good for the country. tor. We want to continue to educate our between Equatoguineans. Lastly, we had to
young people to help our country become work on the security in the country. With-
Equatorial Guinea is now an African self-sufficient. out security, society and business cannot
leader in the production and flourish. Those were the three main ways
Credit: Flickr, Embassy of Equatorial Guinea processing of gas. What role will gas How does Equatorial Guinea maintain that we were able to guarantee the future
play in the nation’s future? good relationships simultaneously of Equatorial Guinea.
17 18Africa Energy Series | Equatorial Guinea
Article
CHAMPION OF A
DIVERSE ECONOMY
His Excellency
Teodoro Nguema Obiang Mangue
First Vice President
Republic of Equatorial Guinea
Equatorial Guinea’s Vice President of
the Republic for National Defense and
Vice President for Defense and State
Security in 2012, a role he held until H.E. Teodoro
State Security, His Excellency Teodoro his appointment to the position of First Nguema Obiang
Mangue, charged
Nguema Obiang Mangue, has taken a Vice President. He also served as the
leading role in the development of the Minister of State for Agriculture and
country, often making diplomatic trips
abroad to further international coordi-
Forestry.
with national
nation and receiving high-ranking offi-
Resource management defense and state
security, was
cials within the country.
The Vice President has a passion for
In 2017, H.E. Teodoro Nguema Obiang
Mangue led a delegation to the Peo-
the conservation of resources, repre- appointed
vice president
senting Equatorial Guinea at the World
ple’s Republic of China where import-
Forum on Water in March 2018.
of the country in
ant agreements were signed, notably
between GEPetrol and state-owned
“In contrast to other natural resources,
Chinese companies. This year, he re-
ceived a delegation from the Kingdom
water is not valued in people’s minds in
the same way as oil or natural gas. This
June 2016.
of Saudi Arabia, led by Almazid Mo-
situation should change; this World
hammed, Vice-Minister for Defense;
Forum on Water should support ini-
the Angolan Minister for Foreign Rela-
tiatives for better use,” he said at the
tions Manuel Augusto; and Chang Wan
summit.
Quan, Minister for Defense for the
People’s Republic of China.
“The responsibility we have is enor-
mous, and our actions today will have
The national vision profound consequences for future
generations. We have the political and
He has pushed for the development moral obligation to ensure a better,
of a diversified economy based on the prosperous future for our children. We
energy sector, mining, fishing and agri- must make every effort to resolve any
culture. tensions regarding access to water.”
H.E. Teodoro Nguema Obiang Mangue, In 2010 H.E. Teodoro Nguema Obiang
charged with national defense and Mangue was appointed President of
state security, was appointed vice the Youth Federation of the Democratic
president of the country in June 2016 Party of Equatorial Guinea (FJPDGE).
by Presidential Decree 55/2016. Pre- During this election, he said he aimed to
viously, he was appointed the Second build “trust between generations.”
19 20Africa Energy Series | Equatorial Guinea
Interview
FOR to establish a self-sufficient agriculture
industry. It is now time to design poli-
How has Equatorial Guinea
managed to maintain excellent
I would like the international communi-
ty to know that this is a country with the
THE GOOD OF THE cies for the implementation of an agri-
culture system that satisfies domestic
consumption first and allows us to avoid
relationships with international
partners, and internally in the
country?
ambition of fighting for its development,
keeping its internal peace and keep-
ing international peace. That’s why we
COUNTRY the import of essential products. We
have very fertile land. On Bioko island, The first reason is that the President
don’t condemn any regime as long as it
cares for its own population. I invite the
for example, a banana plantation yields has done his best to keep the social international community to come here
fruit in just six months. balance inside the country, based on an and see how a small, but progress-driv-
His Excellency idea of equity that has been propitious en country can achieve what we have.
Francisco Pascual Obama Asue We consider agriculture to be the ba- to keep peace internally. Nowadays, We didn’t get any lessons about oil. We
Prime Minister sic lifeline of our country. Oil will end, there is investment in the energy sector don’t just own our oil, but we make our
Republic of Equatorial Guinea but the soil, if properly cared for, never that has helped with this. And without own decisions about it. We are not just
runs out. Out of 1.5 million people, only investment, there isn’t any develop- independent, but sovereign. We are
400,000 wear a tie and live in the cities ment. In order to get investment, we the ones making the decisions about
How have energy projects take part in worldwide forums, such as Regarding Horizon 2020, how — the rest live in the countryside and live need to generate confidence, and this our country. It’s because we didn’t ac-
contributed to the economy’s OPEC, or for its non-permanent mem- would you like to see the energy off the land. Therefore, we believe we confidence is based on the country’s cept external commands that we have
growth and to the country’s bership on the UN Security Council, sector further integrated with need to establish this industry with more political stability that we have fought to achieved what we have. We have been
diplomatic and commercial and other international organizations. the economy and industrial rigor, so it can generate self-sufficiency keep for the past 40 years. criticized for building roads across the
influence worldwide? This has been possible thanks to the development? and more jobs. We might have to reeval- jungle when others have done the same.
added value that the energy sector has uate cocoa and coffee plantations, but To get that stability, the country needs Now I can visit four provinces in five
Regarding oil, as the Head of State brought to the country’s politics, diplo- Horizon 2020, by means of the resourc- agriculture is very important to us. We to foster a feeling of national reconcilia- hours thanks to the new roads.
usually says, there is a misconception macy and development. es provided by oil and gas, has led to the were cut short due to the decline in oil tion among the different ethnic groups.
that it is a curse, in the sense that it has building of basic infrastructure, such as production and prices. This only means This is what the President has tried to There is peace in my country, there
created problems, tensions and insta- On Equatorial Guinea’s 50th roads, airports, ports, and telecommu- that we need to use our imagination to do, to treat them all with justice. And we is political stability and safety, on the
bility in some places. This isn’t due to anniversary of independence, what nications, which have been the founda- take these projects forward. can’t have national reconciliation with- fringes of the terrorism and mercenar-
oil itself, however, but to the fact that do you consider the key moments tion of the country’s progress. Indeed, out a higher command or principle and ies that are trying to invade the world.
its benefits haven’t been distributed to in the oil and gas sector? the energy sector has been the key to What is the importance of local hence, in our dialectics, the figure of the This is because the forces of good are
the whole population, but to a few in- this progress. Now that oil has fulfilled content in the growth of the energy head of state is key. Without policies stronger than the forces of evil here.
dividuals who have been managing it. The peak milestone we can claim re- its role, it is our duty to increase the val- sector and the economy? that promote the common good, this Cicero famously said: Roman senators,
For Equatorial Guinea, oil has been a garding the discovery of oil and gas was ue of infrastructure created by oil, such would be challenging. ask not what Rome can do for you but
blessing because, besides the material when the President of the Republic de- as touristic infrastructure, electric pow- We believe energy has meant every- what you can do for Rome. The Presi-
achievements it has brought about, it cided to organize the second econom- er infrastructure, the creation of small thing for the development of Equatorial Natural resources have helped this in- dent tells the same to the Equatoguin-
has served to make the country known ic conference in the country. The first production industries, an agroindustry Guinea at the economic, cultural, and ternal stability as well as our interna- eans: “This is your country. Own it and
in diplomatic, political and other inter- economic conference was held in 1997, program to satisfy people’s basic needs, even social levels. Can you imagine de- tional status. There are more resourc- see what you can do for it. Do not wait
national spheres. when we were taking baby steps and a fishing program, etc. We don’t have an velopment without electric power or es that we are exploring for, such as for someone to come from abroad and
assessing the oil prospects. When these agroindustry or tourism background as even a small number of industries? All minerals, but oil first and gas second tell us what to do with our country.”
The energy achievements in the coun- prospects turned into realities, he con- they do in other places, such as Rwanda, of this happened because of the energy have been key during this time. I wish
try have contributed to making Equa- vened a second conference in 2007, and hence, it is now time to redesign the sector. we would have started our 50 years of
torial Guinea’s presence known global-
ly. When people talk about Equatorial
where the biggest achievement was the
design of the Horizon 2020 Plan.
Horizon 2020 Plan and use our ingenu-
ity to bring about what oil hasn’t been Talking about local content, thanks to
independence with the resources we
have now, but the first 11 years were
I invite the
Guinea, they don’t think about 1979 and
the coup, but about our status as the The Horizon 2020 Plan, subdivided into
able to do — the diversification of the
country’s economy based on the infra-
the projects in the energy sector, com- unproductive. Then, not until 1992, did international
community to come
panies have participated in the estab- we start with very low production with
third largest oil producer in Sub-Saha- 15 programs, represents the peak mo- structure created thanks to oil. lishment of social projects with the Walter International. Indeed, natural
here and see how a
ran Africa and that we have used these ment. Thanks to it, we have designed the intention of encouraging the local pop- resources have served to put Equatorial
resources wisely to bring the country to country’s development and achieved to- Regarding the agriculture sector, ulation. The Ministry of Mines and Hy- Guinea where it is now, to create inter-
its current state. day’s structure. Without the second con-
ference, we would not have discussed
and considering the past benefits
cocoa has brought to the country,
drocarbons has a department of local
content, which has, together with com-
nal stability and confidence at an inter-
national level. small, but progress-
This is the reason behind our new exter-
nal growth and the new diplomatic mis-
the use of oil resources, and therefore, in
my opinion, both the conference in 2007
what do you think should be the
focus for the next 10 years?
panies in the energy sector, set up sup-
port projects for the general population. What message would you like to
driven country can
sions that have come to establish them- and the designing of the Horizon 2020 The energy sector has played a big role, send about the 50th anniversary achieve what we
Plan are the key moments in the coun- of independence of Equatorial
have.
selves in the country. It is the reason The geographical position of Equatorial and it still does, in the advancement of
that Equatorial Guinea has started to try’s oil and gas development. Guinea provides us with optimal factors local content. Guinea?
21 22Africa Energy Series | Equatorial Guinea
Interview
Profile
What do you see as Equatorial Guinea’s
greatest achievements in the energy H.E. Gabriel Mbaga
industry to date?
Obiang Lima
The greatest achievement is that Equatorial
Guinea has been able to build a portfolio of
projects covering the upstream, midstream
and downstream oil and gas sectors, there-
by working in every part of the value chain.
Upstream includes the ongoing exploration
and drilling work, midstream includes the
transportation of gas from the Alba field to
shore, and downstream includes methanol,
LNG and other activities.
In the beginning, our key milestone was ac-
tually the discovery of oil. For many years
we could see how our neighbors Nigeria,
Cameroon and Gabon were producing oil
and benefiting from that resource. We were
geographically in the middle of all of them,
but did not make big oil discoveries until the
1990s. Discovering oil was a key achieve-
ment that showed that Africa’s legacy pro-
ducers were not the only ones that could
build an oil and gas industry.
How have the government and your min-
istry made the most of this discovery? H.E. Gabriel Mbaga Obiang Lima is widely respected for his incisive
THE NEW What particular achievements stand leadership and for guiding Equatorial Guinea’s energy industry
out? through a resurgence in exploration and production activity. He is
CENTER OF credited with modernizing the development of the country’s hydro-
A big achievement was the inauguration of carbons resources and pushing to extend the value chain through
AFRICAN the methanol plant, which kick-started con-
struction of the LNG plant, and then the
new midstream and downstream projects.
ENERGY inauguration and first cargo from EG LNG.
Other very important moments were the ac-
Most recently the minister is noted for the success of the EG Ronda
2016, in which the country signed several new production sharing
ceptance of the country into the Gas Export- contracts during an oil price downturn, and the successful applica-
ing Countries Forum and into the Organiza- tion for Equatorial Guinea to join the Organization of the Petro-
tion of the Petroleum Exporting Countries. leum Exporting Countries in 2017. H.E. Gabriel Mbaga Obiang
Lima signed recent agreements with South Sudan, Ghana, Burkina
Then, there was the extension development Faso, Togo and Mozambique on various issues of cooperation, such
of the Zafiro field, where we brought new as LNG, gas monetization and local content development.
platforms and FPSOs to the producing field,
His Excellency Before a division of ministries announced in 2016, H.E. Gabriel
and of course the discoveries in Block G.
Gabriel Mbaga Obiang Lima Mbaga Obiang Lima was the Minister of Mines, Industry and En-
Initially, Hess Corp. operated the Ceiba and
Minister of Mines and Hydrocarbons ergy, responsible for the development of power generation, as well
Okume fields, but this has now been taken
Republic of Equatorial Guinea as petroleum development. Working in the oil and gas industry
over by Kosmos Energy.
since 1997, his past positions include Minister Delegate, Vice
Previously the Ministry of Mines and Hydro- Minister, Secretary of State for Mines and Hydrocarbons, Govern-
carbons was the Ministry of Mines, Industry ment Representative in the Equity of the State in PSCs, and Pres-
and Energy and we were involved in the idential Adviser on Hydrocarbons. He has served as a member of
construction of the Djibloho hydroelectric the board of three public energy companies: SONAGAS, SEGESA
plant, the electrification of Malabo and Bata, and GEPetrol.
23 24Africa Energy Series | Equatorial Guinea
and the electrification of the entire na- of understanding these companies. It is
tional grid on the mainland continental important that the companies work on
region. social development and it is important
for them to have a clear understanding
You mention the accession to OPEC, of the country’s local content needs.
which is a landmark for Equatorial Through the different mechanisms that
Guinea. What does this mean for the ministry has, we are able to put the
the country, and how will Equatori- right policies and projects in place. The
al Guinea advance its agenda in the biggest problem right now is that li-
group? quidity is lower and some of those ser-
vice companies do not have the same
We should have joined before, when our number of jobs available, so we depend
production was at its peak. When you more on the operators. But the role of
are doing well and earning good reve- the ministry has been instrumental in
nues, you do not think of collaboration making sure that companies contribute
with others. It is only when you have to social development of the country.
a dramatic situation such as a serious
drop in the price of oil that you realise In 2017, Equatorial Guinea promot-
that it is important to cooperate. We al- ed its role as a regional leader in oil
ways thought that the initial agreement and gas diplomacy and in the gas
between Saudi Arabia and Russia in trade through a series of bilateral
terms of capping production and bring- agreements. What are the minis-
ing OPEC and non-OPEC producers to- try’s key initiatives for 2018 and
gether to achieve market stability was a 2019?
good initiative.
In 2018, we are going to execute our
Working for that initiative as a cooperation agreements with Ghana,
non-member and having direct contact Burkina Faso, Togo, Uganda, South Su-
with Saudi Arabia and Russia gave us dan and Mozambique. We will put in
the interest to join OPEC as a member. place a new technological institute. We
Their agenda is different from ours be- are also going to be focusing on opera-
cause they are bigger producers, but torship. Most plants and blocks are op-
we still share the same objective to with them to create good relationships, Megahub, in which we want to collect It is not the first FLNG in Africa - there is to get advice. Everyone has something erated by international companies. With
have a balanced market price and a re- and to create trust between the min- gas from fields in Equatorial Guin- a FLNG project in Cameroon on-stream to learn. We believe that our develop- a lot of national unemployment, it is very
adjustment from the volatile cycle that istry and the companies. At the same ea and the region, and utilise it at the now - but Fortuna is the first deepwa- ment was delayed by the drop in the oil important that we are more aggressive
preceded this period. Succeeding at time, any activity that can benefit both LNG plant. That is going well already, ter FLNG project of its kind. It is going price. Had the oil price not dropped as in that area. We will make sure that
that aim has been the clear benefit and parties is always welcome. They tend to we have agreements with companies in to be a showcase of what Equatorial low as it did, we would have already en- companies contribute to solving this sit-
achievement from joining OPEC. listen to what we say and we listen to place and we are negotiating gas supply Guinea is able to do - embrace new tered a more advanced stage in finish- uation, and that contribution should be
what they say. There is an indirect bene- agreements with some of the operators technologies and reach agreements ing the Sendje hydroelectric plant, the creating jobs. Operatorship is key - the
What role do international oil fit to the entire population. that will allow this to happen. with partners that will benefit every- new city of Djibloho, and other proj- majority of the operators have all been
companies play in national one. We participate in the shipping, in ects. We are confident that the price international. For the companies that do
economic planning and strategy? How can Equatorial Guinea contin- Our neighbours that are farther away, the offtaking and also in the upstream. will improve and from there we will not want to continue working here, we
ue to push the boundaries of LNG such as Ghana, Togo and Burkina Faso, We are really taking an active lead in move forward. need to take over in terms of operator-
Those companies increase the percent- production and usage within the are on board with our LNG vision. With developing LNG using this method. ship.
age of foreign direct investment coming next decade? the closer neighbours, we hope to be How has the industry’s ability to
in. By having those companies present, able to work with them with the aim of What can Equatorial Guinea learn use Equatorial Guinea’s human The year 2019 is going to be critical, be-
one sends a very clear and strong mes- Our LNG plant was built at a key mo- becoming the key LNG supplier for the from other oil producers in Africa capital changed as projects have cause it is going to be what we are calling
sage on the seriousness and potential of ment when there was a specific niche region. Everyone can have gas, but not and worldwide and what does developed? the Year of Energy. We will host the next
the country. When you have companies market that was not being utilised. We everyone can have LNG. the country have to teach other Gas Exporting Countries Forum heads
like ExonMobil, Marathon, Kosmos En- took advantage of that and built the African oil and gas explorers and I do not think the companies that first of state meeting in Malabo. We are go-
ergy and Total working here, it increas- plant on a fast track, and we were able What is the status of the Fortuna producers? engaged in the petroleum industry had ing to be doing events and conferences
es the level of interest in your country. to maximize its value during that period. floating LNG project and what will an initial plan; this has clearly been an all year round to establish the country of
be the impact of such a project for When we started producing oil, we initiative from the ministry. We have Equatorial Guinea and the city of Mala-
One of the key aspects has been to work Our next initiative is called the Gas the economy? went to Gabon, Cameroon and others been aggressive from day one in terms bo as the center of African energy.
25 26Africa Energy Series | Equatorial Guinea
Interview Interview
Where do you see Equatorial Guin- Equatorial Guinea? viously been the responsibility of the
ea making the biggest strides in the government. We are working to create
energy sector? Our country is more or less on the equa- rules so that the Ministry of Planning
tor, so that means we have a lot of hours and Economic Development can let pri-
The changes in the sector have been of sunlight. We think that solar energy vate investments enter. The challenge
enormous, especially with regards to is a good way to go, and we just partici- is to make sure that the government
electrification. The status of the sec- pated in the International Solar Alliance works like a facilitator.
tor at the beginning of independence held in India. It looks like we will become
in 1968 was completely different to a member of that alliance. We think we What are the next targets with
what it is now. I have been working in are in the right position to see how we regard to industrialization?
the ministry from 1981 until now, and can make the percentage of renewable
I still remember the time I was direc- energy grow via solar energy. We continue to work on facilitating the
tor of a generation plant. Bioko Island private sector in becoming more active,
only needed 2 MW to power the whole At the moment, we are developing a especially in promoting development.
island. Right now, we are talking about project on the island of Annobón for the We will work a lot on the costs of elec-
80 MW, which is a very big change. Pre- installation of a hybrid generation plant tric energy, because all industries use
viously, there was no official power net- of 5 MW that can provide 24-hour elec- energy. If the energy is not competi-
work and the cities were very small. tricity. On the exceptional days where tively priced, the end product cannot
there is not enough sun, other gener- be competitively priced, either. Next to
With regards to generation, we have ators and batteries will be activated. that, we want to work with the cham-
made a huge jump, and the same goes With that, we will be able to advance, bers of commerce and agriculture to
for transmission, reliability and quality. especially in the regions where it is assure the introduction into the global
The petroleum sector had a large influ- more economical to have solar energy market of our products and to introduce
ence on that. All of the changes have than to build pipelines for gas. Equatorial Guinea into the global supply
been thanks to the investments from chain.
the petrol industry. What is the potential for electricity
exports to neighboring countries? How would you introduce Equa-
How close is Equatorial Guinea to torial Guinea to potential foreign
reaching the goals put forward in investors?
A GENERATION the Horizon 2020 plan? What proj-
We need to strengthen the institution-
al relations. The technological compo-
ects are still to be finalized?
LEAP nents always have a solution, but the Even with all the technical advances
administrative, political and institution- in online connectivity, I think that the
The decrease of the price of oil has al challenges are much harder to over- main thing is for potential investors
been an important factor. We have a come. We have a union of energy pro- to come to the country. If not possible
few projects marked as priority, and we ducing countries, and there are certain themselves, they should send someone
will continue the development of those agreements about the division of ener- they trust to see the country, to see the
in the short and mid-term. As of today, gy, but the reality is far from what has potential, to talk with the people here
the cities all have electricity, but we still been agreed. Still, we continue to work and to get a feel of the possibilities and
have to electrify the villages. That is a on having interconnected systems, choose what they think is the best way
priority. Another priority is to improve because it is important to work on the to invest.
the reliability of the network, so that if balance of deficit and surplus of energy.
Our
there is a problem at one of the gener- Our potential for export could be up to
ation plants, the city does not end up 50 percent of the total that we produce.
potential
in darkness. The third priority is to in-
His Excellency crease the percentage of clean energy How are the Ministry of Energy
Miguel Ekua Ondo and Industry and the Ministry of
for export could
generated. For example, in the conti-
Minister of Industry and Energy nental region, 90 percent of the gener- Mines and Hydrocarbons working
Republic of Equatorial Guinea ation is hydropower, which is renewable together to achieve the goals in the
energy. But in the insular part, it is the
other way around. So, we think that we
Horizon 2020 plan?
be up to 50% of
need to look at this very closely. We are working on the improvement of
the industrial framework. We want to the total that
What other types of renewable
energy do you see being viable for
create tools for the private sector to
take on some of the work that has pre- we produce.
28Africa Energy Series | Equatorial Guinea
Interview
sector, and there I saw how a nation- There are many improvements that have
al petroleum company worked. When I been crucial for the economy. For example,
took the job of minister, I realized that maintaining a high level of production via
we had to get workers from other coun- a policy of intensive exploration. Acquiring
tries to work on the platforms and in the Devon’s blocks has been one of the main mo-
oil companies. They told me that was be- tors for the economy, because that ultimate-
cause there were no skilled workers in ly led to monetizing the gas in the Alba field.
FAST Equatorial Guinea. That was when I de-
cided to organize a forum to make sure The execution of power generation proj-
MOVERS that Equatoguineans would work in all
levels of the gas industry. After that, we
ects has also been one of the main im-
provements. Luckily, we have a president
also started working on the hydrocarbons that had a special vision for this. He has
technical institute, to teach students the made sure that all the benefits that came
things they need to work in the oil and gas from the petroleum sector would go into
industry. To this day, we see the effects of public investments like new roads, har-
having this forum - the current minister bors, etc., to improve the country.
How has the energy landscape today is following the policy that we set
evolved since your time as minister? up because it brings a lot of results. Which new companies are making a
difference now?
I was the first minister to have all the dif- Within the forum, we created a hydrocar-
ferent responsibilities under one ministry. bons technical institute and with the help Right now, in Block R, we are working on
To be fair, the changes in the industry in our of several companies, we are making sure the production of a floating LNG platform
country as of August 3, 1979 can all be at- we offer locals the possibility to work in with Ophir Energy, and they are using very
H.E. Atanasio Ela Ntugu Nsa
tributed to the president. It was the “coup this industry. The current minister is now advanced techniques. Equatorial Guinea
Former Minister of Mines,
for liberty.” He opened the space for us and working on getting the institute recog- is pioneering in Africa in that area. And I
Industry and Energy (2004-2008)
we executed his vision. I headed a group of nized as an official university. The alumni think that there are new companies that
Republic of Equatorial Guinea
people to achieve that; one of them is the are all working in this sector in all different are advancing on a technical level. The
current minister. Together with him and levels. I think that this has been one of the longstanding partners are continuing to
a team of highly skilled professionals, we main successes. produce, as well.
were able to execute this vision and im-
prove the landscape of energy and mines. Next to this, in Trinidad and Tobago, we Where does Equatorial Guinea stand
This resulted in important improvements saw how a state-owned gas company can in reaching its mid term and long term
in the energy sector and in the economy of work. So when we returned, we did every- goals?
the country. thing to set this up here as well. GEPetrol is
now functioning, and the state owns assets I think that right now, Equatorial Guinea
Some of the main successes since then in the gas and oil industry. is in a moment of transition. We were in a
have included: launching the first LNG situation of economic crisis, and that was
train with EG LNG, in which the state is a Which companies have had a partic- in part due to the global crisis in oil prices.
25 percent shareholder. I am particularly ularly big impact on the sector and on We depend heavily on the production of pe-
proud of that, because before I was min- the economy? troleum. So when the price of oil decreases
ister, I was selected by the minister at the drastically, we have a problem. We had to
time to negotiate this project. EG LNG has Marathon Oil built a lot of assets and also reduce some of the financing for construc-
truly been a success, a couple of years ago brought in other companies active in the tion. Right now we are slowly recuperating
the full investment was regained, and I am production of gas. Marathon’s Alba field since the price per barrel is slowly going up.
very content with that. is important because it gave us our first
barrel of petroleum, though Marathon was Even though the recuperation is slow, I
Second was the implementation of na- not the operator at the time it was discov- think that by 2020 things will have im-
tional content policy in the hydrocarbon ered. ExxonMobil is also very important proved. How fast the economy will recover
sector. This was an innovation that we due to Block B, which is the area that has I don’t know, but I think that the country
implemented very soon after I became really given us a lot of wealth. is moving forward, and there is hope now.
minister. I entered in June and before De- The government takes this very seriously.
cember we had organized the first forum What are the economic improve- They are looking for ways to increase na-
for national content. I had experienced ments that you would credit to the tional income, and are avoiding corruption.
how Trinidad and Tobago organized its energy industry? We will soon be back to growth.
29 30You can also read
