Equatorial Guinea: a new round of licences to revive the oil and gas sector.

Faced with a steady decline in oil production, Equatorial Guinea is preparing to relaunch the oil and gas licensing process. The announcement was made by the African Energy Chamber (AEC), which stresses the need to attract new capital to revitalise a key sector of the national economy.

Like other hydrocarbon-producing countries in Africa, Equatorial Guinea is facing the gradual depletion of its mature oil fields. According to projections by the International Monetary Fund (IMF), the country's economy is set for a 7.8% recession in 2023, mainly due to falling oil production. This trend is set to continue in 2024, with an estimated 5% contraction in GDP.

The last licensing round took place some six years ago. This new round aims to open up oil and gas exploration blocks to international and regional companies. Details of the areas concerned and the precise launch date are still unknown, but the objective is clear: to reverse the downward trend and guarantee lasting stability for the sector.

As crude oil production declines, the exploitation of natural gas could offer a strategic alternative. The African Development Bank (AfDB) anticipates an increase in gas production by 2025, thanks to the development of new wells. This transition could partly offset the decline in oil revenues and ensure long-term energy security.

Hydrocarbons currently account for 42% of Equatorial Guinea's GDP, 95% of its exports and 90% of government revenue. This heavy dependence on fossil fuels highlights the need for structural economic transformation. The international financial institutions are encouraging the local authorities to undertake reforms aimed at diversifying sources of revenue and strengthening resilience in the face of fluctuations in the global energy market.

The outcome of this new call for tenders will be decisive for the country's energy future. Attracting investment in exploration and production remains a priority in order to ensure the sustainability of the sector and cushion the economic impact of the fall in oil production.