Equatorial Guinea says it has reduced the number of oil and gas exploration blocks still available to fewer than seven, compared with more than twenty a year earlier. Minister of Mines, Hydrocarbons and Energy Antonio Oburu Ondo presented this development at the Global Energy Leaders Forum held as part of African Energy Week 2026 in Cape Town. According to him, the acreage awarded has attracted interest from American and European companies, as well as a few Asian operators.
This shift is part of a change in the allocation strategy: since May, the ministry has favoured direct negotiations rather than periodic bidding rounds. The remaining available blocks can therefore be the subject of bilateral proposals. This approach gives discussions with investors greater flexibility, but makes transparent criteria, a stable legal framework and clear terms all the more important.
The minister's presentation covers more than exploration. It also calls for investment in gas processing, liquefied petroleum gas (LPG) storage capacity and Gas Mega Hub infrastructure. The stated aim is to extend the value chain within the country and attract capital capable of developing industrial facilities.
A portfolio of opportunities beyond the blocks
The Gas Mega Hub is central to this strategy. The scheme brings together volumes from several fields, including the cross-border Yoyo-Yolanda resource shared with Cameroon, to supply the EG LNG plant at Punta Europa. The government now seeks to increase processing capacity and develop additional units. For investors, the question is whether supply can be sufficiently consistent and whether existing infrastructure can accommodate new volumes.
Gas availability alone does not guarantee a facility's profitability. Projects must also secure offtake contracts, transport, technical services, water and electricity requirements, and long-term financing. Expanding a hub can create synergies between several fields, but requires coordination among operators, authorities and neighbouring countries involved in shared resources.
The minister also identified onshore LPG storage as an immediate opportunity. The country currently relies on a converted vessel for its storage capacity. Building onshore facilities would strengthen logistics and security of supply while reducing dependence on a floating solution. Such an investment would, however, require a detailed assessment of demand, safety standards, port connections and operating costs.
Opening the EG-27 discovery to new investors adds to this portfolio. Discussions with ConocoPhillips continue on a non-exclusive basis, leaving the possibility of other partners open. The next step will be to clarify the project's technical potential, appraisal requirements and risk-sharing terms. At this stage, mentioning the discovery must not be confused with a development decision or guaranteed production.
Asia and the United States seek to strengthen ties
Interest in Equatorial Guinea forms part of wider competition for gas supplies. The representative of Japan's Ministry of Economy, Trade and Industry described Africa as an increasingly important supply option for Japan. Facing market disruptions, Tokyo seeks to diversify its suppliers, broaden its outlets and improve emergency preparedness. He also stressed the role of a stable business environment in decisions to commit capital.
Marubeni already holds 6.067% of EG LNG through its UK-registered subsidiary. This presence provides an existing foundation for relations with Japanese players, without guaranteeing that new investments will be approved. Additional projects will need to be assessed on their costs, schedules, contractual framework and ability to generate predictable revenue streams.
Relations with Washington were also highlighted. A representative of the US Department of Energy said American development finance institutions are seeking closer partnerships with African processing projects, particularly in refining. A public equity stake can signal a long-term commitment, but financing decisions will depend on project preparation, governance and risks.
The question of regulatory predictability
For exploration, liquefaction and storage projects, regulatory stability matters as much as the presence of resources. Direct negotiations can accelerate discussions between the state and companies, but must be accompanied by clear information on procedures, operator obligations and allocation terms. Investor confidence also depends on consistent decisions and the ability to implement them over time.
The reduction in available blocks is an indicator of interest, but is not a sufficient measure of investment actually mobilised. Agreements signed, exploration work undertaken, development decisions and progress on announced facilities will need to be monitored. Companies' long-term presence will also depend on infrastructure quality and the availability of a dispute-resolution framework considered reliable.
Equatorial Guinea is thus seeking to move from an approach focused on making acreage available to a more integrated offering combining production, processing and logistics. This ambition could increase local value, provided new capacity is supported by realistic resources, markets and financing. The fewer than seven blocks still open offer a measure of investors' stated appetite; contracts and investments carried out will show whether that interest turns into lasting activity.