Equatorial Guinea has ratified a production sharing contract (PSC) with ExxonMobil to explore an oil and gas block off Bioko Island.
The Ministry of Mines, Industry and Energy said the contract was signed early this year.
Block EG-06 is located offshore Bioko Island.
Gabriel Mbaga Obiang Lima, Minister of Mines for Industry and Energy, said: ‘The Ratification of the new PSC signifies the start of a new adventure between old acquaintances and is expected to be as successful as the first one.
“The agreement with a supermajor like ExxonMobil is a major vote of confidence in Equatorial Guinea, even as global commodity prices remain depressed. This is added proof that offshore Equatorial Guinea continues to be an appealing jurisdiction for the exploration of hydrocarbons.”
ExxonMobil has been active in Equatorial Guinea since 1995 as operator of offshore Block B, near Bioko Island.
The Ratification instrument marks the commencement of the term of the Production Sharing Contract for Block EG-06 and the start of operations.
As part of the minimum work obligations for this PSC, ExxonMobil has committed to acquire 750 square kilometers of new 3D seismic data and drill at least two wells during the five-year exploration period.
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