Analysis by Region - Emerging Markets - Equatorial Guinea

Analysis by Region - Emerging Markets - Equatorial Guinea

The hydrocarbon sector continues its multi-year slide: oil output in Equatorial Guinea dropped to 58,600 barrels per day (bpd) in 2023 from 77,000 bpd in 2022. This is a far cry from the 256,000 bpd recorded in 2012 and well below the long-term average output of 110,000 bpd. The sector faces critical challenges due to maturing oilfields, inadequate investments, and ageing infrastructure. To overcome these impediments, the government is engaging with foreign companies to invest more, renew exploration efforts, and raise offshore oil production. Accordingly, Chevron signed two production-sharing contracts worth $2.0bn with the state-owned GEPetrol following Exxon Mobil's exit in Q2. We expect oil production to decline further to 55,600 bpd in 2024 and 52,000 bpd in 2025. It could drop to 30,000 bpd by the end of 2030.