As the operator, GEPetrol is concentrating its efforts on enhancing production at Block B by means of the redevelopment of the Zafiro field.
The national oil company of Equatorial Guinea, GEPetrol, has devised a comprehensive development plan for the Zafiro Field situated in Block B. The company aims to enhance production flow at the field, capitalizing on its recent acquisition of operatorship in the block to augment production and foster economic growth. This plan heralds a new era of industry expansion for the nation, driven by GEPetrol's transformation into a competitive upstream player.
The field development plan encompasses three distinct phases. The initial phase, scheduled for commencement in early 2025, entails reconnecting select wells that were previously linked to the Zafiro Producer floating production unit (FPU). The cessation of production in 2022 by ExxonMobil was necessitated by water ingress into the Zafiro producer FPU. Concurrently with the first phase, the second phase will focus on cost optimization initiatives and the enhancement of well exploitation and production. The third phase, commencing from 2025 onwards, will involve the redevelopment of the Zafiro field, with the specific plan for this phase currently under deliberation.
GEPetrol took over the operatorship of Block B from ExxonMobil this year after the Production Sharing Contract between the major and the government expired. Block B includes the Zafiro field, an offshore asset that has been in production since 1996, with the potential to increase national oil production through new investments and partnerships. In April 2024, GEPetrol awarded a five-year technical contract worth $350 million to Petrofac, an international service provider, for activities related to Block B, including onshore support bases, an FPSO, and a platform at the Zafiro field. This contract is in line with GEPetrol's commitment to revitalizing the Zafiro field and will support operations as the NOC enhances production.
The phased redevelopment of the Zafiro field coincides with GEPetrol's shift from a state representative to a competitive operator and producer in the industry. The acquisition of Block B signifies this transformation and will play a key role in both GEPetrol's development and the country's economic progress. GEPetrol recently marked the first shipment of Zafiro Blend Crude Oil under its operatorship, demonstrating the proactive approach the company is taking towards managing and expanding the block.
The successful transformation of GEPetrol into a competitive operator aligns with a broader trend of similar NOC restructuring initiatives across Africa, resulting in enhanced competitiveness and capacity for the respective NOCs. Notable examples include Sonangol in Angola, the Nigerian National Petroleum Corporation, Sonatrach in Algeria, and others. On a global scale, the transformation of Petrobras in Brazil, Pemex in Mexico, and Saudi Aramco in Saudi Arabia has positioned these companies as major explorers and producers, enabling them to compete effectively with IOCs and independent players while aligning their projects with national development objectives. By assuming operatorship of Block B, GEPetrol is following this established path and remains steadfast in its commitment to accelerating the development of oil and gas resources in proven blocks such as this.
“The Zafiro field has been a significant contributor to Equatorial Guinea's energy industry for several decades and will continue to be a catalyst for growth in the coming years. By assuming the role of operator, GEPetrol reaffirms its commitment to the block and demonstrates its transformation into a competitive upstream player. GEPetrol eagerly anticipates this new era of industry growth in Equatorial Guinea and the potential collaborations that may arise from the success of Block B," stated Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea.
As a leading voice in the African energy sector, the African Energy Chamber endorses GEPetrol's multifaceted approach to enhancing oil production in Equatorial Guinea.