Eq Guinea expands major crude oil and petroleum tank farm project

EQUATORIAL Guinea has signed a Memorandum of Understanding (MoU) with three companies to build a crude oil and petroleum products storage tank farm on Bioko Island to serve the serve the enormous demand for storage in the currently underserved Gulf of Guinea region.
In an expansion of the previous project plan, the Bioko Oil Terminal will incorporate a significant amount of crude oil storage space, as well as storage for associated petroleum products. It will serve the Gulf of Guinea region and facilitate processing and export to consumers regionally and globally. The MoU establishes the terms of co-operation among the mines, industry and energy ministry and the three companies.
The minstry, Taleveras Group, Gunvor Group and the Strategic Fuel Fund will jointly participate in the Bioko Oil Terminal development. The tank farm will be operated by the Strategic Fuel Fund, which operates Saldanha Bay in South Africa, one of the world’s largest petroleum storage facilities.
Announcing the new MoU early November, minister of mines, industry and energy, Gabriel Mbaga Obiang Lima said, ‘The Bioko Oil Terminal will serve the enormous demand for storage in the currently underserved Gulf of Guinea region. This is a definitive step forward for our nation’s petroleum industry and economic diversification agenda. We are proud to announce that the national bank of Equatorial Guinea, BANGE, will be involved in the financing of the project.’
In another development, following the success of its 2012 and 2014 bidding rounds, the ministry has announced the launch of a new bidding round for all remaining deep and ultra-deepwater blocks in 2016.
Two operators have confirmed they will further explore prospects in Equatorial Guinea in 2016 – RoyalGate Energy will drill Block Z and Brazil’s G3 Oleo e Gas will drill Block EG-01.
‘In a sustained environment of low oil prices, Equatorial Guinea continues to be attractive for deepwater exploration,’ said Obiang Lima. ‘The start of two more exploration drilling campaigns in 2016 reinforces the fact that our contract terms are competitive and appealing to international explorers.’
The minister also stated that the production sharing contract for the Zafiro field, operated by ExxonMobil, will not be extended. ExxonMobil has been active in Equatorial Guinea since 1995 as operator of offshore Block B, which contains the producing Zafiro field. ExxonMobil holds a participating interest of 71.25 percent, GEPetrol has 23.75 percent and the Equatorial Guinea government holds the remaining 5 percent.
The ministry will also not approve the sale of Hess Corporation’s producing offshore assets in Equatorial Guinea to foreign bidders. The US company operates the Ceiba and Okume fields, which began production in 2000 and 2006, respectively. It also states it is not willing to approve Noble Energy’s Carla and Diega developments in Blocks O and I due to project delays. The Carla discovery was made in 2011 and Diega was discovered in 2010.
‘The government of Equatorial Guinea is committed to promoting competitive exploration, contract sanctity and local content compliance,’ said the minister. ‘We intend to create greater opportunities for explorers in the country, including our national oil and gas companies GEPetrol and SONAGAS, which should play a greater role in the petroleum sector.’

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button