Equatorial Guinea, the smallest member of OPEC, is set to overhaul its oil laws next week to attract more investment and reverse a dramatic decline in production. The country’s crude output has dropped over 85% since 2020, prompting the government to introduce a new hydrocarbon law aimed at making contractual terms more competitive and flexible for oil companies.
Antonio Oburu Ondo, Equatorial Guinea’s Minister of Hydrocarbons and Mineral Development, stated that the new law will bring ‘a lot of competitiveness, more flexibility’ to the sector. While there is no specific production target, the focus is on encouraging companies to resume drilling campaigns.
The move comes as Equatorial Guinea seeks to halt the steep decline in its oil output, which has been a significant challenge for the nation’s economy. The government hopes that the revised terms will make exploration more appealing to investors, potentially reversing the downward trend in production.