Equatorial Guinea, ConocoPhillips Sign Heads of Agreement (HOA) for Offshore Blocks, Unlocking $9B Investment Opportunity

 

Equatorial Guinea has signed a Heads of Agreement (HOA) with energy major ConocoPhillips for Blocks B/4 and EG-27 in a move set to unlock up to $9 billion in investments. The HOA outlines the terms for both blocks development and aims to reinforce the country’s position as a regional gas processing hub. As the country advances its national strategy to accelerate upstream growth and bring new production online, the HOA is seen as a pivotal step towards bolstering natural gas monetization in Central Africa.

Signed between ConocoPhillips, Equatorial Guinea’s Ministry of Hydrocarbons and Mining Development, national oil company (NOC) GEPetrol and national gas company SONAGAS, the agreement is not only a reflection of the government’s commitment to private-public partnerships, but ensures that these strategic blocks move towards the development phase at a rapid pace. Through the HOA, the partners have agreed to finalize the Production Sharing Contracts within six months, with the projects set to deliver over 20 years of production.

“This recent agreement is a strong reflection of the government’s commitment to working with foreign operators to advance the country’s exploration and production agenda. Block EG-27 and B/4 will not only support the country’s production growth, but unlock a wave of economic opportunities that will benefit the country for decades to come. By developing these blocks efficiently, we aim to restore production levels to those achieved before 2014 and maximize long-term value for the country,” stated Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development of Equatorial Guinea.

Both blocks are highly promising and feature commercial gas discoveries. Notably, Block EG-27 is estimated to hold up to 2.8 trillion cubic feet (tcf) of gas while Block B/4 is home to an estimated 0.7 tcf. The estimated capital investment to bring these reserves into production is $9 billion, demonstrating the project’s long-term potential and the commitment of all stakeholders. At a time when Equatorial Guinea is realigning its policies, engaging global investors and promoting offshore exploration and production, the deal stands to support production growth by ensuring the development of commercially-viable assets.

Under the leadership of the Ministry of Mines and Hydrocarbons, Equatorial Guinea has been rapidly advancing the development of the natural gas value chain under efforts to cement its position as a regional gas processing hub. The recent HOA exemplifies the country’s strategy to foster a stable, transparent and investor-friendly environment while accelerating resource development in the region, demonstrating the Ministry’s commitment to working with partners to drive projects forward.

In addition to supporting production, the agreement signals ConocoPhillips’ commitment to strengthening Equatorial Guinea’s gas market. It follows a series of milestones by the company in recent months, including the export of the inaugural LNG cargo from the Punta Europa facility in June 2025. Advancing the country’s flagship Gas Mega Hub (GMH) – an initiative that aims to monetize stranded gas reserves in both domestic and regional markets – this milestone underscores Equatorial Guinea’s potential to become a major global gas player. The recently-signed HOA aims to strengthen feedstock for the Punta Europa facility, thereby supporting the success of the GMH. In addition to bolstering production, the development of Blocks EG-27 and B/4 will enhance the value of Punta Europa midstream infrastructure, supplying additional volumes to the facility.

The agreement comes as the Ministry of Mines and Hydrocarbons works to attract new investments in gas exploration and production. With major initiatives such as the GMH, the Ministry is working towards improving security of supply and driving sustainable economic growth. To support greater investment, the Ministry of Hydrocarbons and Mining Development is also preparing to launch its 2026 licensing round. With goals to cement its position as a regional gas hub, the country is promoting investments in a variety of blocks, with the upcoming bid round set to pave the way for exploration and production.

The African Energy Chamber, the voice of the African energy sector, fully supports this agreement as it strengthens Equatorial Guinea’s position as a regional gas hub, attracts long-term investment, and creates jobs. By advancing these blocks, the country is monetizing its resources and driving sustainable growth in line with Africa’s energy future.

Distributed by APO Group on behalf of African Energy Chamber.