Equatorial Guinea's Energy Industry

Equatorial Guinea: repositioning around gas

Equatorial Guinea’s oil and gas industry gained rapid importance after major discoveries were made in 1996. Since then, hydrocarbons development has accelerated and it continues to underpin the economy, accounting for a large share of GDP and export revenues. Despite a land area of just 28,000 square kilometres, the country holds sizeable oil and gas reserves for its size, a resource base that supported its accession to OPEC in 2017. Exploration and production activities are overseen by the Ministry of Mines and Hydrocarbons, which awards production sharing contracts and regulates sector activity.

Most of Equatorial Guinea’s oil output and export revenues have historically come from the offshore Zafiro complex, which was operated by ExxonMobil until the block’s operatorship transferred to the national oil company GEPetrol in 2024. Production from Zafiro began in 1996 and has relied on floating production systems that have been redeployed and reconfigured over the field’s life. With national output and reserves in decline, sustaining production will require continued investment in redevelopment, infill drilling and new exploration.

Alongside efforts to slow upstream decline, Equatorial Guinea is positioning gas as the cornerstone of its next phase of energy development. The government is seeking foreign investment to turn the country into a regional gas processing and trading hub, leveraging existing LNG and onshore infrastructure while exploring opportunities to monetise stranded gas resources across neighbouring basins. Its Gas Mega Hub initiative centres on expanding processing capacity at Punta Europa and developing additional hubs and tie-backs that could unlock gas from fields near the country’s maritime borders, including through cooperation with regional producers.

Although Equatorial Guinea has made repeated efforts to diversify the economy beyond hydrocarbons, commercialisation challenges, financing constraints and the need to sustain investor confidence remain key hurdles as the country navigates declining legacy production and a shifting regional gas landscape.