Key facts
- Equatorial Guinea's crude production has fallen by more than 85% in six years.
- Production in September was 20,000 barrels per day, down from 140,000 bpd in 2020.
- The new hydrocarbon law aims to make contractual terms more flexible.
- ExxonMobil exited the country in 2024 after nearly three decades.
- Chevron remains active in the gas sector, with GEPetrol increasing its stake in the Aseng project.
Equatorial Guinea is set to approve a new hydrocarbon law on Monday following a drastic 85% collapse in its crude oil production over the past six years. Output has fallen to just 20,000 barrels per day in September, a significant drop from approximately 140,000 barrels per day in 2020. This decline has severely impacted the nation's economy, which the International Monetary Fund forecasts will shrink by 1.7% this year. The new law aims to make contractual terms more flexible and offer a wider range of structures to oil companies to incentivize drilling in existing fields and exploration areas. The government is also open to direct negotiations for blocks and has established special economic zones. These efforts aim to attract investment amidst challenges such as mature fields, limited recent exploration, and the departure of ExxonMobil in 2024. Chevron continues to operate in the country's gas sector, with state oil company GEPetrol increasing its stake in the Aseng project.