• Government discusses oil- and LNG-backed prefinancing with trading firms
• Funds aimed at sustaining production at existing fields
• Talks come as output declines and licensing plans advance

Equatorial Guinea, a member of the Organization of the Petroleum Exporting Countries (OPEC), is seeking to raise about $300 million through prefinancing agreements backed by crude oil and liquefied natural gas (LNG).

According to reports carried by several international media outlets on January 22 the government is in talks with commodity trading companies to secure immediate funding in exchange for future deliveries of oil and gas spread over several years.

The funds would be used to finance the restart and continued operation of production activities, including covering costs linked to fields currently in operation, according to the same sources. At this stage, no deal has been officially announced, and neither the Ministry of Petroleum nor national companies GEPetrol and Sonagas have commented on the discussions.

The initiative follows earlier efforts. In 2024, Equatorial Guinea held talks with trading group Trafigura over a potential financing package estimated at $2 billion, though no final agreement was made public, according to Bloomberg.

Alongside oil, gas remains a key pillar of the country’s energy sector. Equatorial Guinea has exported LNG since the Punta Europa complex came on stream in 2007, notably through facilities developed with the participation of international groups such as ConocoPhillips and a local unit associated with Chevron, according to operator data.

A reshaping of the oil sector

Equatorial Guinea’s oil production has been on a documented downward trend for more than a decade. According to OPEC’s Annual Statistical Bulletin 2024, output fell from about 241,000 barrels per day in 2010 to 55,000 barrels per day in 2023.

In November 2022, U.S. major ExxonMobil announced plans to divest its assets in Equatorial Guinea, a decision confirmed in 2024 with the completion of its exit from the country, according to Reuters. The company’s stakes were taken over by state-owned GEPetrol, transferring control of key oil assets to the government.

At the same time, authorities have announced a new licensing round for oil and gas blocks. In September, Hydrocarbons Minister Antonio Oburu Ondo said a new licensing round for 2026 would cover 24 oil and gas blocks, including 22 offshore and two onshore, according to international media reports. The bidding window is scheduled to run from April to November 2026.

Despite recent withdrawals, several international players remain active in Equatorial Guinea. Chevron, through its local subsidiaries, is involved in the Aseng gas field, while ConocoPhillips remains associated with the country’s LNG infrastructure. Independent company Trident Energy is also among the operators present on major offshore assets, according to Reuters.

Abdel-Latif Boureima