• Wednesday, July 24, 2024
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Waltersmith wins bid for acquisition of bloc EG-23 in Equatorial Guinea

Nigeria’s investment-starved oil sector looks too big tech

Following a competitive bidding process in Equatorial Guinea’s 2019 licensing round (EGRONDA 2019), Waltersmith Petroman Oil Limited, Nigeria’s integrated energy company, was recently awarded bloc EG-23 in Equatorial Guinea’s Niger Delta basin.

The government of the Republic of Equatorial Guinea offered to the international industry a total of 27 oil and gas blocs and the entire Continental Region of the country for mining exploration and received 21 offers.

Following the evaluation of the different packages of offers received from interested companies, Bloc EG-23, which hosts the Estaurolita gas discovery was granted to WalterSmith-Hawtai Energy- GEPetrol SA. GE Petrol, EG’s national oil company has a 20 percent participating interest in EG-23, while Waltersmith and Hawtai Energy Hongkong have 40 percent participating interest each. The EG-23 bloc is a shallow offshore bloc with water depths of about 100m.

The ministry of mines and hydrocarbon in its website issued a press release stating, “The Ministry of Mines and Hydrocarbons is pleased to announce the award of 9 Oil and Gas blocs and 15 Mining Blocs to selected companies that participated in the Petroleum Bid and the first Mining Bid in the Republic of Equatorial Guinea (EGRONDA 2019).”

Speaking at the award ceremony, the minister of mines and hydrocarbon, Gabriel Obiang stated that the EG-23 bloc was a very strategic bloc for Equatorial Guinea in view of the recently signed MoU for its LNG train, as the gas reserves from the bloc would be needed for LNG gas supply and expressed confidence in the competence and experience of Waltersmith to deliver on the development of hydrocarbons.

In his response, the chairman of Waltersmith Petroman Oil Limited, Abdulrasaq Isa, expressed his appreciation to the government of Equatorial Guinea for having confidence in Waltersmith as a company and affirmed its readiness to bring its experience and capacity to Equatorial Guinea and collaborate with its partners.

The commercial agreements are expected to be ratified by all parties, the Equatorial Guinea Ministry of Mines and Hydrocarbons and the Equatorial Guinean Parliament in the coming weeks and signed by the President of Equatorial Guinea.