Equatorial Guinea expects increased hydrocarbon investment and production in 2021

Despite the coronavirus pandemic and the subsequent historic fall of oil prices, Equatorial Guinea expects increased investments and hydrocarbon production in 2021.

In a statement released on Thursday, the Ministry of Mines and Hydrocarbons announced a forecast of $1.1 billion in foreign direct investment in 2021. The inflows consist of $832 million in firm commitments and $370 in contingent investments.

The ministry said the renewed investment inflow in the country's hydrocarbons sector will inevitably result in an increase in the country's daily production of oil and gas.

It thus expects a substantial jump in production figures in 2021, along with key drilling activities for new wells in the Trident Energy-operated Block G.

"As the upstream sector looks up, the Ministry of Mines and Hydrocarbons will also continue its efforts to promote key projects and opportunities that have made its year of investment a success despite challenging conditions," said Gabriel Lima, the minister of mines and hydrocarbons.

Several key infrastructure projects, such as modular refineries and gas-based manufacturing units, are currently in the pipeline and expected to further boost the country's recovery in 2021.

In efforts to support foreign capital in Equatorial Guinea, the ministry granted special extensions for capital projects this year, allowing operators and investors to continue their geophysical and geological studies and activities. This is in addition to identifying structures to be drilled at the end of 2021 or in 2022.

"Equatorial Guinea remains committed to providing an enabling environment for companies to operate in the country in good and bad times. We will continue to engage with all operators to make sure the best measures are taken to support the recovery of upstream activities," Lima said.