São Tomé and Príncipe and Equatorial Guinea have
agreed on the establishment of a Special Zone for Joint Exploration to explore
and develop cross-border oil & gas reserves believed to be in the blocks
bordering each country’s maritime zone.
The decision was taken during a meeting this
week in Malabo between H.E. Osvaldo Abreu, Minister of Public Works,
Infrastructures, Natural Resources and Environment of São Tomé and Príncipe and
H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of
Equatorial Guinea. It notably follows several cooperation agreements signed
last year during the official visit of President Evaristo Carvalho to
Equatorial Guinea, which notably included joint oil exploration in the
countries’ maritime zone.
Both ministers discussed plans to expedite joint
exploration efforts in the blocks within their maritime zone, and expect
operations to start as early as October 2020. São Tomé and Príncipe is also set
to benefit from Equatorial Guinea’s experience in the hydrocarbons sector,
especially when it comes to offshore oil & gas exploration, production and
monetization. In this regard, Equatorial Guinea has agreed to select students from
São Tomé and Príncipe to study oil-related courses in the country.
São Tomé and Príncipe is believed to be an
upcoming frontier when it comes to oil & gas. It has already attracted
several international players in its blocks, including Galp Energia, operator
of block 6 and Kosmos Energy, operator of block 11. International major Shell
also participates in both blocks with a 20% and 30% stakes respectively. At the
beginning of the year, Galp announced that it would be drilling its first well
in block 6 by the end of this year following seismic surveys conducted since
2017.
In its ambition to open up a new petroleum
frontier in African waters, São Tomé and Príncipe hopes to rely on the
expertise of its African neighbours. The country shares another joint area with
Nigeria, Africa’s biggest oil producer, which resulted in the signing of a
treaty in February 2001.
As we have seen in other parts of Africa, energy
cooperation between neighbours on the continent can unlock tremendous value for
African nations. Senegal and Mauritania for instance have signed an agreement
of intergovernmental cooperation in 2018, paving the way for BP to take final
investment decision on developing the cross-border Greater Tortue Ahmeyim gas
field, located on the maritime border between both countries.
The Gulf of Guinea holds similar potential for
joint exploration and development between São Tomé and Príncipe and Equatorial
Guinea, but also Cameroon and Nigeria. Hopes are high that the ongoing
cooperation and dialogue between São Tomé and Príncipe and Equatorial Guinea
will pave the way for additional joint development efforts in the region.