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$2 bn investment to boost energy sector in Equatorial Guinea

2.4 billion dollars will be invested in the energy industry in Equatorial Guinea by US companies operating in the country.

According to Gabriel Obiang Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons, 11 oil wells will be drilled by 2019.

In September, he warned that the government could refuse to extend existing licences to oil companies unless they collectively invest a minimum of $2 billion in the country.

This investment will be used for drilling, backfilling and increased production, which has been on a decline,” the minister added.

ExxonMobil, Kosmos Energy, Marathon Oil Corp and Noble Energy are potential investors.

Equatorial Guinea, an OPEC member, is the third largest oil producer in sub-Saharan Africa and depends mainly on oil and gas exports for its economy.