Equatorial Guinea moves to get new hydrocarbon law

In a move to enhance domestic capacity, streamline processes, and position the state-owned companies to better deal with the challenges faced in the oil and gas industry a new hydrocarbon law will be passed in Equatorial Guinea.
Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, proposed a National Oil Company (NOC) restructuring process as part of energy industry reform, whereby GEPetrol and SONAGAS will merge into one company.
This is in recognition of the realities around building a resilient hydrocarbon sector while dealing with energy transition.
At the Leadership Insight Series: Equatorial Guinea webinar hosted by the Bilateral Chamber in Houston, Lima provided insight into the possible NOC restructuring, emphasizing that the Ministry is positioning state-owned enterprises as a driving force of the country’s energy sector growth.
With emerging large-scale projects, new sizeable discoveries, and significant infrastructural developments anticipated in the sector, the Ministry has emphasized the role that NOCs will play in accelerating progress.
This move is central to increasing exploration and production and making the NOC into a more integrated energy company that will move beyond its responsibility as state asset manager.

The move is likely to see the NOC supporting major efforts toward economic diversification, raising capital to engage in merger and acquisition and operation of assets, at the same time actively driving the energy sector growth in Equatorial Guinea.
According to the Minister, the NOC will be a key player in supporting the development of ESG targets in Equatorial Guinea that are transparent, objective, and accessible to IOC partners and other multilateral institutions.
The development of local content and building a workforce that leverages the progress that has been made in the past and restoring oil and gas as an attractive destination for younger people.