Equatorial Guinea will launch new petroleum regulations to support its hydrocarbons industry with emphasis on improving local content.
The Ministry of Mines and Hydrocarbons is pushing forward with its Year of investment initiative and plans to make project announcements in fourth quarter of 2020.
During a webinar hosted by Africa Oil & Power in partnership with the African Energy Chamber and the Ministry of Mines and Hydrocarbons of Equatorial Guinea, Gabriel Mbaga Obiang Lima, the country’s Minister of Mines and Hydrocarbons (MMH) provided key insight on the country’s plans in working through the current state of global oil markets and the COVID-19 pandemic.
Considering 2020 and 2021 ‘the lost years’ amid the low oil price and COVID-19, Lima stressed the importance of flexibility and taking a realistic approach in order for oil producers all over the world and, especially in Africa to recover from the downturn.
Maintaining his optimism, the minister said to the attendees of the webinar that: “I believe this pandemic presents new opportunities for the African continent. It is a new opportunity because some of the historical services operators are leaving countries with the resources and they are having to realize that they have to do the work themselves.”
“This is a chance for African entrepreneurs to enter the market and operate their installations themselves rather than waiting for the pandemic to end. It is a great opportunity but, with this great opportunity, we still need to be realistic,” he added.
In taking a realistic approach, H.E. Gabriel Mbaga Obiang Lima said with the second half of the year rapidly approaching, small African oil producing countries needed to focus on research and development, give license extensions and look at 2021 as the year of rethinking.
In doing this, the minister provided that Equatorial Guinea would see new legislation announcements which would include the limitations of expatriates which will be for three years and, encouraging the national service industry to take responsibility and prepare for the rebound.
“The other regulation that we are planning to launch this week is mineral and petroleum regulation,” the minister announced.
The launch of this regulation will allow the MMH to develop on its mining industry and see that there is a good deal of local participation in the sector.
By Tanko Mohammed
