Equatorial Guinea Overhauls Oil Law as Output Crashes

Hydrocarbons Minister Antonio Oburu Ondo intends to replace rigid mandates with flexible contractual terms tailored to varying investor risk appetites. The strategy centers on incentivizing immediate drilling campaigns in mature fields and stagnant exploration blocks. By offering direct negotiations and establishing special economic zones, the government hopes to fill the void left by ExxonMobil, which shuttered its three-decade operation in 2024.

While Chevron continues to anchor the gas sector—bolstered by state firm GEPetrol’s recent move to increase its stake in the Aseng project to 32.55%—the oil outlook remains precarious. Global buyers seeking alternatives to Middle Eastern supply routes currently find little available volume in the country. Success for the new framework hinges entirely on whether these fiscal incentives can spark genuine drilling commitments before the remaining mature production reaches exhaustion.