- I. Introduction
- 1. Why a Source Book?
- 2. Opportunities and Challenges
- 3. The Extractive Industries
- II. Cross-Cutting Topics
- 4. Transparency and Accountability
- III. The Extractive Industries Value Chain
- 5. Policy, Legal and Contractual Framework
- 6. Sector Organization and Institutions
- 7. Fiscal Design and Administration
- 8. Revenue Management and Distribution
- 9. Sustainable Development
The regulation of mining in Equatorial Guinea is undertaken by the Ministry of Mines, Industry, and Energy, which oversees activities in the mining and petroleum sectors.
Equatorial Guinea (EQ) is Africa’s seventh largest producer of crude petroleum and ninth largest producer of natural gas. Equatorial Guinea has proven reserves of 150 Mt of crude oil and 36.81 billion m3of natural gas. Exploitation of large oil reserves have contributed to dramatic economic growth in recent years. Whilst growth remained strong, it dropped in 2009 (and then again, in 2014/5, for the same reason) due to the fall in the global oil price.
Box: showcasing Mbendi's external resources: EQ's Upstream Petroleum
Equatorial Guinea is situated on the oil rich Gulf of Guinea and comprises the Rio Muni coastal enclave, the island of Bioko and the islands of Annobon, Corisco, Elobey Grande and Elobey Chico. The upstream oil industry is key to the economy of Equatorial Guinea and is growing rapidly with expanding foreign interest and investment. Equatorial Guinea’s economy has grown since it started exporting oil in 1995. The country’s natural gas production continues to increase.
The offshore area of Equatorial Guinea falls into two separate sections; the shelf around Bioko Island and the Shelf off Rio Muni, an enclave between Cameroon and Gabon. Both have good hydrocarbon potential.
Although oil was first discovered in the 1960’s, it was first produced offshore in 1991 from the Alba oilfied discovered by Mobil. Production of liquified natural gas (LNG) began in 1997, using wet gas from Alba field. In March 1995, Zafiro field was discovered in Block B with an eventual production rate of 100,000 bpd. Zafiro oilfield is Equatorial Guinea’s major oil producer. Additional discoveries were made on Block B, including Jade, Topacio, Amatista, Rubi and Serpentina. In 1999, a deepwater field, La Ceiba with estimated reserves as high as 300 to 500 million barrels was discovered by Triton Energy and Energy Africa in Block G of the Rio Muni Basin. In mid 2000, Chevron and Vanco Energy signed production sharing contracts for the deepwater Block L and Corisco Block respectively.
Equatorial Guinea’s possessions in the Gulf of Guinea provide it with complex maritime boundaries and territorial delineations... Since mid 1999 there have been strained regional relations over maritime boundaries. Particularly at issue is the Zafiro field in Block B, with Nigeria claiming that it is part of the same structure as the Ekanga oilfield which was discovered by Elf in Nigeria’s concession block OML 102, just 3.5 kilometres north of Block B. Equatorial Guinea and Gabon have disputed the ownership of three islands in the Gulf of Guinea, including Mbagne Island, since the 1970s. In July 2004, the two countries reached an agreement allowing joint oil exploration in the disputed territories until a final resolution is worked out under U.N. mediation.
The Government’s Ministry of Mines and Hydrocarbons regulates the industry and is the licensing authority. Originally the state was represented in an operating company called Guinea-Espanola de Petreleos SA (GEPSA), a 50/50 joint venture between it and Spain’s Hispanica de Petroleos (Hispanoil, now Repsol). GEPSA was subsequently dissolved and there is now no fully owned national oil company in Equatorial Guinea.
The following minerals are mined, through both formalised and informal artisanal and small-scale mining (ASM): gold, diamonds, coltan, iron, bauxite, tin and tungsten. EI Source Book narrative content on artisanal mining is concentrated within Chapter 2. Opportunities and Challenges, including section 2.1 The Opportunities from Resource Wealth and core to Chapter 2's Mining Specifics Challenges/ Opportunities materials; a library of over fifty artisanal mining downloads is provided as the central content of Chapter 3's Mining Specifics Challenges/ Opportunities materials.