Monday, September 22, 2014

Equatorial Guinea Discovers New Gas Well In Bioko Island

Country to expand LNG project

Equatorial Guinea’s Minister of Mines, Industry and Energy, Gabriel Obiang Mbaga, recently announced the discovery of a new gas well off the coast of the Island of Bioko. The new gas well will allow the ministry to expand the Floating Installation of Liquefied Natural Gas (FLNG) project in the country.

“I am extremely pleased that the increase in recoverable reserves in Block R, as a result of the drilling of the Silenus East-1 well may result in a potential expansion of the Block R FLNG project from a 2.5mm TPA to a 3.0mm TPA project. We are currently in negotiations to conclude the Block R gas terms and confirm the midstream partners, with the development of the first project of Floating Installation of Liquefied Natural Gas (FLNG) planned for early 2019.”

President Obiang Nguema Mbasogo has established the strengthening of the energy sector in Equatorial Guinea as a national priority. Equatorial Guinea LNG Holdings Limited (EG LNG), a national liquefied natural gas company, began operations in 2007 and has shown excellent results.

In the last decade, the West African Nation has become one of the major regional powers in hydrocarbon extraction and processing, leading to an unprecedented economic boom and transformation, which has been noted by the ICE Economic Bulletin. The development of the country’s energy sector plays a mayor role in taking the country closer to become an emergent and sustainable economy by 2020.

The well was discovered by Ophir Energy, which estimates that the Silenus East -1 discovery includes recoverable reserve of 405 bcf (billion cubic feet) of gas, with de-risked prospects for similar prospects in the area. Ophir’s initial assessment is that the recoverable reservoirs in the broader Silenus area, including this discovery, are approximately 1.2 TCF (trillion cubic feet).