Equatorial Guinea and Lukoil continue talks on Block EG-27

This article was published on Year of Investment.

Equatorial Guinea’s Ministry of Mines and Hydrocarbons and Russian energy multinational Lukoil continue discussions on the development of offshore block EG-27.

Located in the Niger Basin, EG-27 (formerly Block R) was awarded to Lukoil and GEPetrol in November last year through the EG Ronda 2019 bidding round. The company is expected to issue a decision regarding participation in the development of the block by July.

“We are still in talks with Lukoil. We recently had a video conference, where I discussed our opinion with them…we want to give them some time to make the decision,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, Equatorial Guinea. “But the period is reaching its limit. By July, we must make a decision; or the agreement with Lukoil will continue, or we will recover that area and promote it again for any other interested party.”

As the Russian energy giant has cut production in accordance with the OPEC+ cuts implemented in May, the company is currently reevaluating its activities, which may impact decision-making regarding block EG-27.

“They are still considering it and many factors have changed,” said H.E. Minister Lima. “I think the most logical thing to do is think about doing more replenishment evaluations. Maybe next year, if we have an agreement, it will be then when Lukoil makes the decision of the best concept.”