Equatorial Guinea Expecting $2.4 Billion Oil Investment

(Bloomberg) -- Equatorial Guinea expects international oil companies to spend about $2.4 billion on the nation’s oil and gas industry by the end of next year, a government official said.

The investment should include about 11 new wells, the official said, asking not to be identified because the information is private. They didn’t give a breakdown in spending by company. In 2017, foreign direct investment across all industries in Equatorial Guinea was $304 million, United Nations data show.

The country has been in talks with companies including Exxon Mobil Corp. and Kosmos Energy Ltd. after joining the Organization of Petroleum Exporting Countries in 2017 and offering permits to foreign explorers. It’s seeking to address a decade-long decline in production, which fell to about 120,000 barrels a day last month.

The government is in discussions with Exxon over the company’s Zafiro field, the country’s biggest deposit, and as a consequence will freeze plans to hold a tender there, the official said.

Exxon didn’t respond to a request for comment, while Dallas-based Kosmos declined to comment before an earnings call on Monday. Kosmos teamed up with Trident Energy Ltd. last year to buy interests in three exploration licenses off Equatorial Guinea, as well as Hess Corp.’s stake in the Ceiba and Okume fields.

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