On April 26, the Government of the Republic of Equatorial Guinea signed a non-binding memorandum of understanding with Shell Gas & Power Developments B.V. to evaluate business opportunities in the oil and gas industry in Equatorial Guinea. The MoU builds on Shell’s presence in Equatorial Guinea as an off-taker of LNG from EG LNG via its acquisition of BG Group.
The MoU, signed by the Minister of Mines and Hydrocarbons H.E. Gabriel Mbaga Obiang Lima, outlines how Shell and the state will work together. It commits the parties to creating a framework to further improve their cooperation. Shell brings considerable experience in the gas value chain, from exploration to marketing the MoU will facilitate discussions on further agreements between the government and Shell.
“Gas is the future for Africa’s economies,” said H.E. Gabriel Mbaga Obiang Lima. “Equatorial Guinea has shown what this fuel can do, and with a partner like Shell, we are confident that our new ventures in the exploration and production of our natural resources will generate a prosperous future for our nation and for our region. We’re excited to continue working with Shell on finding new opportunities in the hydrocarbons sector.”
The Ministry of Mines and Hydrocarbons has recently signed agreements with Ghana, Togo and Burkina Faso to supply LNG. Its effort to expand its gas horizons is underpinned by large historical and current investments in upstream natural gas and processing projects. Shell entered Equatorial Guinea in 2016 through its acquisition of BG Group. Through the acquisition it took over a long-term gas off-take agreement with Equatorial Guinea LNG. The company currently has no upstream acreage in Equatorial Guinea, but through this MoU and future agreements, could enter new areas of the energy value chain.