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US companies set to boost Equatorial Guinea’s Energy sector with $2 bn investment

It’s been a year since Bata, a province in Equatorial Guinea experienced a massive power outage.

Widespread and severe electricity outages besotted Bata ( Litoral province) which disrupted local services, communications, commerce, and flights between Bata and the capital,
Malabo. According to media reports published on September 29. Only a few of Bata’s buildings (i.e., some hotels and shops) reportedly had access to backup power generators, impeding commerce and the provision of public services. Because of the power outages, streetlights are only sporadically providing illumination to public areas, and many local residents are unable to charge and utilize mobile phones or other communications networks.

According to Gabriel Obiang Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons, 11 oil wells will be drilled by 2019. In September, he warned that the government could refuse to extend existing licenses to oil companies unless they collectively invest a minimum of $2 billion in the country.

This investment will be used for drilling, backfilling and increased production, which has been on a decline,” the minister added. ExxonMobil, Kosmos Energy, Marathon Oil Corp and Noble Energy are potential investors. Equatorial Guinea, an OPEC member, is the third largest oil producer in sub-Saharan Africa and depends mainly on oil and gas exports for its economy.

With this investment, the energy sector is prime to gain grounds and also support other sectors.

 

By: Harry

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