Choppy waters ahead for Equatorial Guinea as production declines

Minister of mines, industry and energy, Gabriel Obiang Lima, is taking a hard line with investors amid low oil prices and falling output

Gabriel Obiang Lima is a frustrated man. Equatorial Guinea’s energy minister spoke candidly to PE about what he described as “dilly-dallying” from international oil companies such as ExxonMobil, Marathon, China National Offshore Oil Corporation and Noble Energy, who he said also showed flagrant disregard for his office. The oil-dependent economy looks set to contract through 2020, under pressure from low oil prices and declining production. Obiang Lima said his ministry was disinclined to grant ExxonMobil an extension on the Zafiro deepwater field in Block B where the US major operates with an 80% interest, once it expires in 2023.  Production peaked at the field in 2004 at 280,000 barrels p