06 June, 2017
Confirming the development, Exxon Mobil in a statement on Monday, said it has signed Production Sharing Contract with Equitorial Guniea for Oil acreage E.G. -11.
Deepwater block EG-11 measures about 307,000 acres (1,242 km) and is adjacent to Zafiro field, located in Block B.
Following ratification of the contract by the government, ExxonMobil will carry out the work program as operator with an 80 percent working interest.
Last month Equatorial Guinea on May 25 agreed to become the 14th member of Opec. The US major also has an 80% interest in block EG-06, which is adjacent to block EG-11.
Recall that Exxon Mobil already operates Zafiro field, the largest oil producing field in Equatorial Guinea. Its partner, GEPetrol, holds the remaining 20%.
According to its oil ministry, Equatorial Guinea will start work on two main projects this year: Fortuna FLNG, Africa's first floating LNG plant; and the Bioko Oil Terminal, the biggest crude oil and petroleum products storage facility in West and Central Africa.
The winning bids of the Ronda 2016 licensing round are scheduled to be announced later on Monday at the Cape Town conference.
United Kingdom player Ophir Energy headed the list of acreage winners in Equatorial Guinea's latest licensing round that was dominated by smaller players. Of those, seven companies were awarded acreage in the round.
Equatorial Guninea closed its licensing round in April 2017, with more PSCs expected to be signed in September 2017.
