Recent offshore oil discoveries, and the prospects for additional finds, make Equatorial Guinea one of the leading areas for oil exploration in sub-Saharan Africa.

GENERAL BACKGROUND

In 1959, the provinces of Fernando Po (the current island of Bioko) and Rio Muni (mainland province and smaller islands) were declared an integral part of Spain. The two provinces were joined to form Equatorial Guinea in 1963, and were granted partial self-government. Full independence was achieved in October 1968, with Francisco Macias Nguema as the country's first president.

President Macias Nguema banned opposition parties in 1970, and appointed himself president for life in 1972. In 1979, President Macias Nguema was overthrown and later executed in a military coup led by his nephew, Teodoro Obiang Nguema Mbasogo. Obiang Nguema Mbasogo assumed the presidency, and established the ruling Supreme Military Council (composed of military and civilians since 1981). President Obiang Nguema Mbasogo was re-appointed for an additional seven years in 1982.

Constitutional amendments passed in August 1982 provided for legislative and presidential elections as an integral part of the transition from military to civil rule. In 1987 President Obiang Nguema Mbasogo formed the Partido Democratico de Guinea Ecuatorial (PDGE), and was re-elected (unopposed), in August 1989, for a seven-year term.

In January 1992, a law allowing for the creation (or legalization) of new (opposition) political parties was established, and President Obiang Nguema Mbasogo dissolved the government. The first multi-party elections were held in 1993, and the ruling PDGE took 68 of the 80 legislative seats. In February 1996 President Obiang Nguema Mbasogo was re-elected. A majority of the opposition parties boycotted both elections.

Equatorial Guinea's economy has traditionally been reliant on agriculture (primarily cocoa, coffee and fishing), but this sector of the economy has been stagnant, with the exception of a small but growing export-timber industry. The petroleum sector will dominate the economy in the future. Aid has played an important part of the country's economy, but aid programs sponsored by the IMF and World Bank have been suspended due to government mismanagement and corruption. Equatorial Guinea currently receives the majority of its bilateral aid from Spain and France.

Expansion of the petroleum sector (exploration and production) was the main impetus in the extraordinary real GDP growth of 64.6 percent in 1996. Although the government of Equatorial Guinea (GEG) has not formalized plans on the spending of oil revenues, the GEG is proposing to set aside 10 percent of revenues in a "trust fund for future generations".

OIL

Petroleum reserves were first discovered offshore in 1991 by the Spanish firm of CEPSA. The original estimate for the Alba field was 68 million barrels of recoverable (condensate) with an API gravity between 47- 48. Production on the Alba field began in late 1991 with the U.S. independent Walter International as the operator. The Alba field averaged production of 7,000 barrels per day (b/d) from two wells in 1995. CMS Nomeco acquired Walter International's share in the field (in 1995), becoming the field's operator. Other partners in the field are Samedan Oil Corp., Globex International and Axem Resources. In January 1997, production of liquefied petroleum gas (LPG) utilizing wet gas from the Alba field began. The plant is currently extracting 1,700 b/d of LPG and an additional 400 b/d of condensate, but it has capacity to produce 2,400 b/d of LPG.

The offshore Zafiro field (exploration Block B) was discovered by Mobil in March 1995. The field is north of the island province of Bioko, and approximately 23 miles (36 kilometers) south of Nigeria's Edop field, which is also operated by Mobil. Initial production began, just 18 months after the discovery in August 1996, at 7,000 b/d. By the beginning of 1997 production from eight wells had reached 40,000 b/d. Since Equatorial Guinea lacked the necessary infrastructure to support large scale oil production, Mobil (75 percent share of field) and partner United Meridian Corp. (UMC) (25 percent) decided to utilize a floating, production, storage and off-loading (FPSO) vessel to operate the Zafiro field. The FPSO, the Zafiro Producer, a converted VLCC (very large crude carrier), has a storage capacity of 1.5 million barrels of oil. The FPSO production is expected to reach its current capacity of 80,000 b/d by the end of 1997. An upgrade of the FPSO, which will expand production capacity to 120,000 b/d, is scheduled to begin before the end of 1997. Estimates of recoverable reserves from the Zafiro field are currently at 300 million barrels of oil. Additional exploration on Block B has yielded several discoveries. It is expected that production from the Jade, Topacio, Amatista, Rubi, Opalo and Serpentina will be tied into the Zafiro Producer.

The Nigerian government has questioned Equatorial Guinea's sole ownership of the Zafiro field. Officials from the Nigerian government were dispatched to Malabo "to discuss modalities on how to resolve the problem." At issue is whether Zafiro is a separate field, or is it part of an oil structure that straddles the territorial waters of both countries. Elf holds the lease on the Nigerian block, OML 102, which lies just 2 miles (3.5 kilometers) north of the Zafiro field. Elf and Nigeria claim that seismic data of the field confirms that it extends into Nigerian territory. Nigeria has called for a determination of the boundary between the two nations and for the establishment of joint-field development. Nigeria is currently embroiled in a boundary dispute with Cameroon over the oil-rich Bakassi Peninsula. Negotiations between Nigeria and Equatorial Guinea have met with little success so far.

Exploration in Equatorial Guinea is expanding beyond Block B. It was announced in July 1997 that U.S. Triton Energy has signed a production sharing agreement for two offshore oil blocks, F and G. The blocks are located off the island of Bioko, approximately 155 miles (250 kilometers) southeast of the capital Malabo. UMC has drilled one exploratory well on its Block D concession which tested dry. UMC (75 percent) and Yukong (25 percent) also hold the license on the offshore Block C. In September 1997, the GEG contracted with Western Geophysical to carry out a seismic survey of offshore areas to be offered during the licensing round scheduled for the last quarter of 1998. The survey will cover areas offshore Bioko and Rio Muni.

Equatorial Guinea imports all of its refined petroleum products. Petroleum consumption was estimated at 1,000 b/d in 1995. The company Getotal, which is owned evenly by Total and the GEG, is the only downstream participant in Equatorial Guinea's petroleum sector.

NATURAL GAS & ELECTRICITY

The majority of the gas produced (with the condensate) from the Alba field has been flared, but plans are now developing to utilize it. Samedan Oil Corp., one of the partners in the field, are evaluating the feasibility of constructing a methanol plant on Bioko that would use Alba gas as a feedstock. If approved the project is expected to take 5 years before operation due to the fact that basic infrastructure must also be installed. A plan to construct gas turbines, 6-8 megawatt (MW) on Bioko, to replace an existing diesel power plant, is also being considered. The plant along with a similar facility at Bata in Rio Muni, would be built on the BOT (build-operate-transfer) scheme. A $10 million World Bank/IDA proposal also includes the rehabilitation of the existing hydroelectric facilities on Bioko. The Riabo Dam, which has two 13 MW turbines, has been in operation since 1989.

COUNTRY OVERVIEW
President: Teodoro Obiang Nguema Mbasogo
Prime Minister: Angel Serafin Seriche Dougan
Independence: October 12, 1968 (from Spain)
Population (1997E): 0.4 million
Location/Size: Western Africa(mainland province of Rio Muni), bordering the Atlantic Ocean at the Equator between Cameroon, and Gabon. The territory also consists of the islands of Bioko, Pigalu, Elobey Grande, Elobey Chico and Corisco in the Atlantic Ocean./28,050 square kilometers (10,831 square miles), about the size of Maryland
Major Cities: Malabo (capital) on island of Bioko, Bata on mainland enclave of Rio Muni
Languages: Spanish (official), Fang, pidgin English, Bubi, Ibo
Ethnic Groups: Fang (constitute majority of mainland population), Bubi (on Bioko), Fernandinos, Bujebas, Bengas, Hausa, Ibo, Ibibo, Efik and about 1,000 Europeans mainly Spanish
Religion: Christian (predominantly Roman Catholic), Muslim, traditional beliefs
Defense (1996E): Army (1,100), Navy (100), Air Force (100), paramilitary forces (2,00)

ECONOMIC OVERVIEW
Currency: Communaute Financiere Africaine (CFA) franc
Market Exchange Rate (8/27/97): US$1 = 610 CFA
Gross Domestic Product (purchasing power parity)(1995E): $325 million
Real GDP Growth Rate (1996E): 64.6%
Inflation Rate (1994E): 40.6.%
Major Trading Partners: Spain, Cameroon, Nigeria, France, United States, Japan, Italy, Portugal, the Netherlands
Merchandise Exports (1993E): $62 million
Merchandise Imports (1993E): $60 million
Major Export Products: Coffee, cocoa beans, oil, timber
Major Import Products: Food, clothing, petroleum products, machinery
Total External Debt (1995E): $293 million

ENERGY OVERVIEW
Minister of Mines and Energy: Juan Olo Mba Nseng
Director General, Mines and Hydrocarbons: Miguel Abia Biteo Boriko
Proven Oil Reserves (1/1/97): 12 million barrels
Oil Production (1997Q2E): 48,000 barrels per day (b/d), of which 40,000 b/d is crude oil
Oil Consumption (1996E): 1,000 b/d
Net Oil Exports (1996E): 13,000 b/d
Natural Gas Reserves (1/1/97): 1.3 trillion cubic feet (tcf)
Electric Generation Capacity (1/1/96): 5.0 megawatts
Electricity Generation (1996E): 0.02 billion kilowatthours (bkwh)
Electricity Consumption (1995E): 0.02 bkwh

ENVIRONMENT OVERVIEW
Total Energy Consumption (1995E): 0.0021 quadrillion Btu
Energy Consumption per Capita (1995E): 5.3 million Btu (vs. 345.9 million Btu in U.S.)
Energy-related Carbon Emissions (1995E): 0.04 million metric tons (0.0007% of world carbon emissions)
Carbon Emissions per Capita (1995E): 0.1 metric tons (vs. 5.4 metric tons in U.S.)
Major Environmental Issues: Forest management to prevent deforestation and wildlife destruction

OIL AND GAS INDUSTRIES
Major Oil Fields (Production - b/d, 1995): Alba (7,000), Zafiro (none), Amatista (none), Jade (none), Opalo (none), Rubi (none), Serpentina (none), Topacio (none)
Oil Production by Company (1995E): CMS Nomeco (formerly Walter International) (100%)
Major Foreign Oil Company Involvement: Mobil, United Meridian, Samedan (Noble Affiliates), Triton, Yukong, CMS Nomeco

For more information on Equatorial Guinea, see these other sources on the EIA web site:
International Energy Annual 1995 - Annual international energy data through 1995
Latest EIA Detailed Annual Data (1994)
1997 CIA World Factbook - Equatorial Guinea

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File last modified: September 24, 1997

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