Equatorial Guinea’s national oil company (NOC) GEPetrol has outlined a multi-phase development plan for the Zafiro Field, located in Block B. The company will work towards increasing the flow of production at the field, leveraging its newfound position as operator of the block to bolster production and support economic growth. The plan envisages a new era of industry growth for the country, all on the back of GEPetrol’s restructuring as a competitive upstream player.
The field development plan comprises three phases, the first of which will be implemented at the beginning of 2025. This phase includes reconnecting selected wells that were previously connected to the Zafiro Producer floating production unit (FPU). ExxonMobil was forced to halt production in 2022 due to water entering the Zafiro producer FPU. The second phase, which will be implemented in parallel to the first phase, involves cost optimization work as well as the optimization of well exploitation and production. The third phase will be implemented from 2025 onwards and will feature the redevelopment of the Zafiro field, with the plan for this phase currently under discussion.
GEPetrol assumed operatorship of Block B from energy major ExxonMobil this year, following the expiration of the Production Sharing Contract that existed between the major and the government. Comprising the Zafiro field – an offshore asset that has been producing since 1996 – the block has the potential to boost national oil production through fresh investment and collaborations. In April 2024, GEPetrol awarded a five-year technical contract to international service provider Petrofac for work related to Block B. The $350 million contract covers services related to onshore support bases, an FPSO and a platform at the Zafiro field. The contract aligns closely with GEPetrol’s commitment to revitalizing the Zafiro field and will support operations as the NOC boosts production.
The multi-phase redevelopment of the Zafiro field comes as GEPetrol redefines its role in the industry from an entity that represents the state to a competitive operator and producer. The acquisition of Block B reflects this transformation and will be instrumental in both GEPetrol’s evolution and the country’s growth. GEPetrol has also recently celebrated the first shipment of Zafiro Blend Crude Oil with the NOC as operator, showcasing the proactive approach the company is taking to operating and growing the block.
GEPetrol’s transformation into a competitive operator follows a trend of similar NOC restructuring in Africa, all of which have enhanced the competitiveness and capacity of the respective NOCs. These include Angola’s Sonangol, the Nigerian National Petroleum Corporation, Algeria’s Sonatrach, and more. Globally, the transformation of Brazil’s Petrobras, Mexico’s Pemex and Saudi Arabia’s Saudi Aramco positioned these companies as major explores and producers, allowing them to compete with IOCs and independents while aligning projects with national development objectives. With its operatorship of Block B, GEPetrol is following the same path and remains committed to accelerating the development of oil and gas in proven blocks such as this.
“The Zafiro field has played an important part in shaping Equatorial Guinea’s energy industry for several decades and will continue to be a catalyst of growth in the years to come. By taking over as operator, GEPetrol is not only demonstrating its commitment to the block but the company’s newfound transformation into a competitive upstream player. GEPetrol looks forward to this new era of industry growth in Equatorial Guinea as well as new collaborations that will unfold as a result of Block B’s success,” stated Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea.
As the voice of the African energy sector, the African Energy Chamber supports the multi-faceted approach GEPetrol is taking to boost oil production in Equatorial Guinea.
Distributed by APO Group on behalf of African Energy Chamber.
