Chevron has entered into two production sharing contracts (PSC) with GEPetrol for the EG-06 and EG-11 blocks offshore Equatorial Guinea.

GEPetrol is Equatorial Guinea’s state-owned oil company.

The blocks are located near the producing Block B, which includes the Zafiro oil field in the Gulf of Guinea.

According to African Energy Chamber (AEC), the two highly prospective blocks are poised to significantly revive offshore exploration and production in Equatorial Guinea. The investment by Chevron and GEPetrol in the two blocks is also expected to play a key role in reversing the decline in the production of oil, said the voice of the African energy sector.

African Energy Chamber executive chairman NJ Ayuk said: “The recent Production Sharing Contract (PSC) signing between Chevron, the Ministry, and GEPetrol marks a significant milestone in Minister Antonio Oburu’s upstream investment drive. This partnership is a testament to the country’s commitment to revitalising exploration and boosting production offshore.”

Block EG-11 covers approximately 1,242km², while Block EG-06 includes the Acestruz-1 oil discovery well drilled in 2017.

The PSCs will help Chevron expand its portfolio in Equatorial Guinea while enhancing production from the untapped resources, as per African Energy Chamber.

Equatorial Guinea Minister of Mines and Hydrocarbons Antonio Uburu Ondo said: “The signing of these production sharing contracts between Chevron, GEPetrol, and the Ministry marks a significant milestone in our ongoing efforts to revitalise the upstream sector.

“This partnership is a testament to Equatorial Guinea’s commitment to enhancing exploration and boosting offshore production. We believe that these investments will bring about a resurgence in our oil and gas industry, contributing significantly to our national economy.”

The new PSCs are said to detail comprehensive development plans for the two assets. They specify minimum investment requirements, exploration programmes, sustainable development initiatives, and state benefits.

Chevron and GEPetrol also intend to initiate a new exploration and production campaign in these blocks, which were previously under ExxonMobil’s ownership.

In Equatorial Guinea, Chevron already has a significant footprint, holding interests in the Aseng, Alen, and Yolanda fields in Block 1.

The American energy company is also advancing the Gas Mega Hub (GMH) project, which aims to establish Equatorial Guinea as a central processing hub for stranded gas assets in domestic and regional markets.

Chevron’s affiliate Noble Energy along with Marathon Oil, signed a heads of agreement last year for Phases II and III of the Gas Mega Hub project.

Phase II involves processing gas from the Alba field, while Phase III focuses on gas from the Aseng field.