West Africa Energy Assembly Lagos, 1-2 December, 2015 Government of Equatorial Guinea Ministry of Mines Industry and Energy EQUATORIAL GUINEA: Oil and Gas Industry H.E. Gabriel M. OBIANG LIMA MINISTER OF MINES, INDUSTRY AND ENERGY Government of Equatorial Guinea www.mmie.gob.gq
EQUATORIAL GUINEA: COUNTRY FACTS Government of Equatorial Guinea www.mmie.gob.gq
The Engine for Economic G rowth and Societal Welfare 77% ofannual GDP Morethan 95% ofoverall exports Nearly 90% of government revenue
20 YEARS OF OIL PRODUCTION 2004 2007 BARRELS PER DAY 400000 300000 2000 Ceiba Field comes online just 13 months after offshore discovery 2001 AMPCO begins production of high-grade, low-cost methanol EG LNG shareholders announce FID for $1.3 billion Train 1 EG LNG consoritum delivers first cargo 2011 First oil from Aseng field 200000 100000 1995 Zafiro deep water complex is discovered in offshore Bioko 2006 Hess-operated Okume complex comes online 2013 Alen gas and condensate field goes onstream 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Government of Equatorial Guinea www.mmie.gob.gq
Huge trade cooperation with Asian economies Equatorial Guinea annual oil and gas exports CHINA Crude Oil $1.5 billion 18 % SOUTH KOREA Crude Oil $61 million LNG $233 million 0.79 8.33% % TOTAL $10.6 billion INDIA Crude Oil $385 million 5% JAPAN Crude Oil $222 million LNG $2.3 billion 2.85 % 83 % Government of Equatorial Guinea www.mmie.gob.gq
EQUATORIAL GUINEA : 2014 BIDDING ROUND PSC of Block EG-06 signed and ratified (ExxonMobil) Five PSC are currently being negotiated There are other open blocks available
EXPLORATION BLOCKS Next year, two companies will start exploration drilling: G3 Petroleum and Gas (Block EG-01) Royalgate Energy (Block Z)
P RODUCTION PROFILE Liquids production by field Alba Zafiro Ceiba Okume Aseng Alen 287,370 BPD Dry Gas 1.3 bcf/d LNG 3.7 MTPA Methanol 2,685 MTD Government of Equatorial Guinea www.mmie.gob.gq
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Equatorial Guinea, oil and gas production profile 400000 300000 200000 100000 0 Zafiro Alba Ceiba Okume Aseng Alen 4% 12% 28% 56% Crude oil Condensate Dry Gas Natural Gas Plant Liquids 397,935 BOEPD [barrel oil equivalent per day] ALBA GAS COND. 850 mmcfd - 36.000 bpd EGLNG LNG 3.4 mmtpa AMPCO METHANOL 1 mmtpa ALBA PLANT LLC LPG 20,000 bopd ZAFIRO OIL 100,000 bopd CEIBA OKUME OIL 70000 bopd ASENG OIL 40,000 bpd ALEN GAS CONDENSATE 22,563bpd ANNUAL PRODUCTION AVERAGE PER DAY-BBLS
Fortuna FLNG : The next generation of mega projects November 6,2014: EG and Ophir Energy reach agreement for Floating Liquefaction Storage and Offloading Vessel. First gas expected in 2019 Government of Equatorial Guinea www.mmie.gob.gq
STRONG LEGAL FRAMEWORK Guarantees for investors Legislative stability Access to international arbitration 3Nov.2006 Hydrocarbons Law (Law 8/2006) 3Nov.2006 Mining Law (Law 9/2006) 20June, 2013 Regulations on P etroleum Operations (Ministerial Order 4/2013) 26Sep. 2014 National Content Regulation (Ministerial Order 1/2014) 2015 Amended Mining Law under consideration
STATE SUPPORT Sector regulation: Ministry of Mines, Industry and Energy National oil company: GEPetrol National gas company: SONAGAS
NATIONAL OIL COMPANY Was established as the National Oil Company of Equatorial Guinea in February 2001, and became operational in 2002. Manages the State s participation as a shareholder in the PSCs. Participates as a partner with other companies, in exploration and production activities: Ceiba Field/ Okume Complex with Hess Aseng /Alen with Noble Energy Zafiro Field Complex with Exxon Mobil Alba Field with Marathon Oil & Noble Energy It has as subsidiaries Gepetrol Insurance and Gepetrol Services.
NATIONAL GAS COMPANY Is a State-owned company, set up in 2005, to develop gas projects with the aim of maximizing returns. As part of its policy to create added value from the country s gas resources, SONAGAS G.E. is carrying out various projects: Liquefied Petroleum Gas (LPG) Production( Alba Plant), with Marathon Oil and Noble Energy. Methanol Production (AMPCO Plant), with Marathon Oil and Noble Energy. Liquefied Natural Gas (LNG) Production(EG LNG), with Marathon Oil, Mitsui and Marubeni. Local distribution of domestic gas (LPG) through GEOCAM, a subsidiary.
Bioko Oil Terminal Crude oiland petroleum products storage in thegulfof Guinea is an area in need of investment. WestAfrica s largest storage facility 1.2 million cubicmeters capacity Phase 1 ready in 2016 CURRENT SITUATION OPTIMIZED SITUATION CURRENT SITUATION OPTIMIZED SITUATION Crude, Diesel and Gasoline: PHASE 1 The State of EG, is cooperating on the implementation of a storage and handling terminal for crude oil and petroleum products in the Republic of Equatorial Guinea. PHASE 2 Break Bulk and Blending Opportunity
Bioko Oil Terminal Suitable for VLCC and Suez class crude carriers Large increase in product shipment to Asia
Petrochemicals Revolution The Petrochemicals Revolutionof Equatorial Guinea(REPEGE) is our plan tomaximize value from Equatorial Guinea s abundant gas reserves Gas agreements in place Meets economic diversification goals Location and initial investor established
REPEGE urea amoniaco npk Land clearing
Petroleum Industrial City of Luba Industrial area focused on development of tertiaryand logistics activities for petroleum sector Government objective is to create and industrial zone for the oil and gas industry in Luba as a complementary of the activities already in place in LUBA FREEPORT LTD Luba city is located on Bioko Island, 52 kilometers from the capital, Malabo. With a population of 25,000 peoples and its main feature is that it is located in a bay with exceptional conditions for maritime traffic.
INVESTMENT OPPORTUNITIES IN OILAND GAS Petroleum Industrial City of Luba: Objectives Decongesting urban areas Developing tertiary activities and logistics of theoil sector Provision ofdownstream services Optimizingsector growth Developing oil and gas port activities Creatingpotential forsme s Increase national revenue
CNG PROJECT: GASIFICATION 24MW POWER PLANT Turbo Gas power plant provides 98% of the electricity of the Bioko Island with a capacity of 146MW.- 24 MW power plant in Bata runs with heavy fuel oil and provided de 20% off the electricity in the main land in dry season.- The fuel gas update project is with the objective to use the gas as main fuel to reduce also the highly fuel oil importation cost.- Bioko Turbo Gas Power Plant Update: Power Capacity: 146 MW Date of culmination: June 2011 Fuel Gas update for 24 MW Power Plant in Bata for reducing importation fuel oil cost
CNG PROJECT: PILOT STATION FOR BUSES CNG station pilot project was designed to see alternative fuel for automotion proposes (buses, ambulances, etc.)
Bringing LPG to Bata Transporting LPG from Punta Europa Installing gas supply toall homes and hotels in Oyala LPG bottlingplant in Bata PUNTA EUROPA LPG distribution in Bata and Oyala regions P roject objectives: Encourage the use of LPG in all buildings Establish processes for latest technology Train technicians in thegas industry and create opportunity BATA
GOLD They were discovered five areas as follows: 1. Coro (I). 2. Mongomo (II and III). 3. Aconibe-Edumsok (V). 4. Ncomo-Ngama (IV). From the five, the most studied is the Coro in 1980-1990.
BAUXITE Equatorial Guinea has bauxite deposits located in the mountains of Niefang and, on the plateau of Wele- Nzas: 1. Along the road Mongomo - Nkue. 2. Near the village Bisobinam (Nsorca area) Just completed in Area 2 of the mainland, specifically in the District of Niefang, the first phase of the exploration campaign in detail, conducted by the company ARG. Área 1 Área 2 Área 4 Área 6 Área 3 Área 5
SEGESA: Regional power leader in Central Africa
SEGESA OVER THE YEARS CAPACITY (MW) 561 334 214 2001 SEGESA is established 2004 17 MW are added to Punta Europa turbo gas power plant 2011 Punta Europa plant gets upgrade to 148 MW 93 76 2012 2013 2017 71 120 MW Djibloho hydroelectric power station comes online SEGESA is restructured into 3 separate units 200 MW Sendje hydropower plant is expected for completion 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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