Chevron and state-owned GEPetrol have signed production sharing contracts (PSCs) with Equatorial Guinea’s Ministry of Mines and Hydrocarbons for offshore Blocks EG-06 and EG-11.
The contracts allow Chevron and GEPetrol’s to launch a new exploration and production campaign at these blocks, which were previously held by ExxonMobil (OGJ Online, Dec. 16, 2019). The new PSCs outline development plans for the assets, including provisions on minimum investments, exploration programs, sustainable development, and state benefits.
Blocks EG-06 and EG-11, near producing Block B which houses Zafiro field, are considered highly prospective. Block EG-11 is in 400-2,800 ft of water and covers about 1,242 sq km, while Block EG-06 features an oil discovery at the Acestruz-1 well, drilled in 2017.
Chevron has stakes in three fields in Equatorial Guinea’s Block 1 including Aseng field, Alen field, and Yolanda field. The company is also developing the Gas Mega Hub (GMH) as a processing hub for stranded gas assets in domestic and regional markets. Last year, Chevron affiliate Noble Energy and Marathon Oil signed a heads of agreement for the next two phases of the GMH. Phase II includes processing gas from Alba field while Phase III will process gas from Aseng field.
