GEPetrol Unveils Development Plan for Zafiro Field to Boost Production and Economic Growth

GEPetrol’s acquisition of operatorship for Block B from ExxonMobil this year follows the expiration of their Production Sharing Contract.

Equatorial Guinea’s national oil company, GEPetrol, has announced a comprehensive multi-phase development plan for the Zafiro Field, situated in Block B. This strategic plan marks a significant shift for GEPetrol as it aims to enhance oil production and support the country’s economic growth through its newfound role as the operator of the block.

The development plan, set to begin in early 2025, is divided into three distinct phases. The first phase involves reconnecting selected wells that were previously linked to the Zafiro Producer floating production unit (FPU), which had its operations halted in 2022 due to water ingress issues. Concurrently, the second phase will focus on cost optimization and refining well exploitation and production processes. The third phase, scheduled to start from 2025 onwards, will see the redevelopment of the Zafiro field, with detailed plans for this phase still under discussion.

GEPetrol’s acquisition of operatorship for Block B from ExxonMobil this year follows the expiration of their Production Sharing Contract. This block, which includes the Zafiro field that has been operational since 1996, represents a key opportunity for increasing national oil production through new investments and partnerships. In April 2024, GEPetrol secured a five-year, $350 million technical contract with international service provider Petrofac. This contract will provide essential support services related to onshore bases, an FPSO, and a platform at the Zafiro field, aligning with GEPetrol’s goal of revitalizing the field and ramping up production.

The redevelopment of the Zafiro field signals GEPetrol’s evolution from a state-representative entity to a competitive operator and producer. This shift is part of a broader trend seen across Africa, with other national oil companies such as Angola’s Sonangol, Nigeria’s NNPC, and Algeria’s Sonatrach undergoing similar transformations. Globally, companies like Brazil’s Petrobras, Mexico’s Pemex, and Saudi Arabia’s Saudi Aramco have also transitioned into major players in the oil and gas sector, competing with international oil companies and independents.

Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea, emphasized the significance of GEPetrol’s new role: “The Zafiro field has been crucial in shaping Equatorial Guinea’s energy landscape for decades. GEPetrol’s takeover as operator not only reflects our commitment to this vital block but also highlights our transformation into a competitive upstream player. We anticipate a new era of industry growth and look forward to the collaborations and successes that Block B will bring.”

The African Energy Chamber, representing the voice of the continent’s energy sector, has expressed strong support for GEPetrol’s multi-faceted approach, praising the company’s efforts to boost oil production and drive economic development in Equatorial Guinea.