(WO) – Equatorial Guinea’s national oil company (NOC) GEPetrol has outlined a multi-phase development plan for the Zafiro Field, located in offshore Block B. The company will work to increase production flow at the field by leveraging the new its position as an operator of the bloc to boost production and support economic growth.
The plan envisages a new era of industry development for the country, all based on the restructuring of GEPetrol as a competitive upstream player.
The field development plan includes three phases, the first of which will be implemented in early 2025. This phase involves reconnecting selected wells previously connected to the Zafiro Producer floating production unit (FPU).
ExxonMobil was forced to halt production in 2022 due to water inflow into the Zafiro producer’s FPU. The second phase, which will be implemented in parallel with the first phase, includes cost optimization work as well as well exploitation and production optimization.
The third phase will be implemented from 2025 onwards and will include the development of the Zafiro field, with the plan for this phase currently being discussed.
GEPetrol took over management of Block B from energy major ExxonMobil this year, after the Production Sharing Agreement between the major company and the government expired.
Consisting of the Zafiro field – an offshore asset that has been producing since 1996 – the block has the potential to boost national oil production through new investments and partnerships.
In April 2024, GEPetrol awarded a five-year technical contract to international services company Petrofac for work related to Block B. The $350 million contract covers services related to onshore support bases, an FPSO and a platform in the Zafiro field .
The contract closely aligns with GEPetrol’s commitment to revitalizing the Zafiro field and will support operations as NOC ramps up production.
GEPetrol also recently celebrated the first shipment of Zafiro Blend Crude Oil with NOC operator.
The transformation of GEPetrol into a competitive operator follows a trend of similar restructuring of NOCs in Africa, which have strengthened the competitiveness and capacity of the respective NOCs.
These include Sonangol of Angola, Nigerian National Petroleum Corporation, Sonatrach of Algeria and others. Globally, the transformation of Brazil’s Petrobras, Mexico’s Pemex, and Saudi Arabia’s Saudi Aramco positioned these companies as major explorers and producers, allowing them to compete with IOEs and independents while aligning projects with national development goals.
With the management of Block B, GEPetrol follows the same path and remains committed to accelerating oil and gas development in proven blocks like this one.
“The Zafiro field has played an important role in shaping Equatorial Guinea’s energy industry for several decades and will continue to be a catalyst for growth in the coming years. By taking over as operator, GEPetrol not only demonstrates its commitment to the block, but also the company’s new transformation into a competitive player in the past. GEPetrol looks forward to this new era of industry development in Equatorial Guinea as well as new partnerships that will unfold as a result of the success of Block B,” said Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea.
