Malabo – June 6th, 2005
EQUATORIAL GUINEA SELLS PARTIAL INTEREST IN EQUATORIAL GUINEA LIQUEFIED NATURAL GAS PROJECT
Malabo, 6th June, 2005 – The Ministry of Mines, Industry and Energy, representing the Government of Equatorial Guinea, announced today that agreements have been entered into under which GEPetrol, the National Oil Company of Equatorial Guinea will sell to each of Mitsui & Co., Ltd. (Mitsui) and a subsidiary of Marubeni Corporation (Marubeni), a 6.5 percent interest in the Equatorial Guinea Liquefied Natural Gas (LNG) project. Marathon will also sell a 2% interest to Mitsui. After the sale, the interests in the project will become:
- GEPetrol 25%
- Marathon 60%
- Mitsui 8.5%
- Marubeni 6.5%
The thirteen percent interest in the project that GEPetrol is selling is being obtained from Marathon by GEPetrol’s exercise of a purchase right as a shareholder in the LNG project company. Under the terms of this purchase by GEPetrol, Marathon will be reimbursed for its actual costs incurred up to the date of closing, plus an additional specified rate of return.
Under the terms of the sales to Mitsui and Marubeni, GEPetrol will be reimbursed for the cost of purchasing the thirteen percent interest from Marathon and GEPetrol will additionally receive a premium and future consideration based upon the performance of the LNG project.
This is the first material investment by Japanese companies in Equatorial Guinea and was made only after thorough due diligence investigations.
Commenting on today’s announcement, Atanasio Ela Ntugu Nsa, Equatorial Guinea’s Minister of Mines, Industry and Energy, said, “ The Government of Equatorial Guinea welcomes Mitsui and Marubeni to our country and the partnership that is developing the Equatorial Guinea LNG project. We believe our expanded partnership is an important sign of the international business community’s confidence in our LNG Project, our economy and the substantial investment potential that exists in Equatorial Guinea. This project is enabling us to more fully develop our abundant natural resources while providing long-term economic, social and environmental benefits to the people of Equatorial Guinea. We look forward to working with our new partners as we seek ways to achieve continued economic growth. ”
Malabo – July 22nd, 2005
APPOINTMENT OF DIRECTOR GENERAL AND ASSISTANT DIRECTOR GENERAL OF SONAGAS, G.E
Malabo, 22nd July, 2005 - The Ministry of Mines, Industry and Energy is pleased to announce the appointment of the Director General and Assistant Director General of SONAGAS, G.E. by Presidential Decrees 125/2005 and 126/2005 on July 11th, 2005.
Appointed as Director General of SONAGAS, G.E is Sr. D. Juan Antonio Ndong Ondo and appointed as Assistant Director General is Sr. D. Serapio Sima Ntutumu.
Sociedad Nacional de Gas de Guinea Ecuatorial (SONAGAS, G.E) is the National Gas Company of Equatorial Guinea which was created by Decree Law 45/2005 on January 24th, 2005.
SONAGAS, G.E will be responsible for all existing and future gas related projects in Equatorial Guinea which currently includes the State's equity participation in the Equatorial Guinea Liquified Natural Gas Plant (EGLNG), the State's equity interest in the Atlantic Methanol Production Company (AMPCO) and the State's interest in the Marathon operated Punta Europa Liquified Petroleum Gas plant.
Malabo – September 13th, 2005
INVITATION TO BID BLOCK R
(Blocks D-9, D-10, E-8,E-9 and E-10)
Malabo, 13th September, 2005 - At a meeting held at the Ministry of Mines, Industry and Energy in Malabo today, selected companies were invited to submit bids for Block R (formerly licensed to Total as Block E).
The selected companies (Anardarko International Energy Company, Energy Equity Resources AS (EER), Kosmos Energy, Ophir Energy Company, Nexen Petroleum, Pexco Exploration and Repsol) were those companies that had earlier expressed interest in Block R.
The Ministry of Mines, Industry and Energy will examine the received bids and then invite the successful company or companies (if a consortium is formed) to negotiate a PSC for Block R. The PSC negotiations will then be conducted between a commission consisting of the Ministry of Mines, Industry and Energy, the Ministry of Finance and GEPetrol and the successful bidder.
Block R is located to the west of ExxonMobil's Block C and is adjacent to the maritime borders between Nigeria and Sao Tome.
Malabo, 19th October, 2005 – The Ministry of Mines, Industry and Energy is pleased to announce that the P-2 exploration well, operated by Devon Energy, is an oil discovery.
The Ministry anticipates that further evaluation of the P-2 discovery will take place during 2006.
In the Ministry's view, the P-2 well further demonstrates the evolving potential of the Rio Muni Petroleum Systems that were established by the Ceiba and Okume Complex discoveries from 1999 to 2004.
Malabo, 19th October, 2005 – The Ministry of Mines, Industry and Energy is pleased to announce that the O-1 exploration well, operated by Noble Energy, is a gas condensate discovery.
The O-1 well, located in 250 feet of water and approximately 20 miles east of Bioko Island, was drilled to a total depth of 10,360 feet. Test results were encouraging, with condensate-rich natural gas producing at maximum flow rates of 24 million cubic feet per day of natural gas and 1,225 barrels per day of condensate. Flow rates were limited by surface test equipment.
The Ministry anticipates that additional appraisal work will be performed to determine the commerciality of the discovery. The operator is currently reviewing options for a multi-well exploration and appraisal program, which could begin in 2006.
Noble Energy is the technical operator of Block O with a 45 percent participating interest. Its partners on the block include GEPetrol, the national oil company of the Republic of Equatorial Guinea, with a 30 percent participating interest and Glencore Exploration Ltd. with a 25 percent participating interest.
Malabo, 31st October, 2005 – Further to the meeting held in Malabo on September 13th 2005, where selected companies were invited to submit bids for Block R, the Ministry of Mines, Industry and Energy has analysed the received bids and is pleased to announce that the successful bidder is Ophir Energy Company.
Ophir Energy Company's successful bid included a US$ 75 million signature bonus, a commitment to drill 3 exploration wells during the initial exploration period and a 20% carried interest for the national oil company, GEPetrol.
Ophir Energy Company will therefore be invited, firstly, to sign a Memorandum of Understanding (MOU) and following signature of the MOU will be invited to negotiate for a PSC for Block R, with a commission consisting of the Ministry of Mines, Industry and Energy, the Ministry of Finance and GEPetrol.
It is anticipated that the PSC negotiations will take place in the near future.
Further to meetings held in Malabo on December 17th to 20th, 2005, the China National Offshore Oil Corporation (CNOOC) has signed a Memorandum of Understanding (MOU) with the Ministry of Mines, Industry and Energy and GEPetrol, the National Oil Company of Equatorial Guinea for Block S, Offshore Rio Muni.
PSC negotiations between the Ministry of Mines Industry and Energy, GEPetrol and CNOOC will commence early in 2006.
Sale of Zafiro Crude
Further to meetings held in Malabo on December 17th to 20th 2005, the Chinese National Company UNIPEC has signed a Memorandum of Understanding (MOU) with GEPetrol, the National Oil Company of Equatorial Guinea to lift and purchase 15,000 barrels per day of Zafiro Blend Crude.
Both of these MOU’s follow the agreement signed in Beijing on 20th October 2005 concerning China and Equatorial Guinea cooperation.