Zeus Virtual Energy Libary
Market Statistics and Analysis of Gas Monetization and Gasifivcation Projects Worldwide

Legal Frameworks Abroad

Equatorial Guinea

Equatorial Guinea’s energy law is dominated by its Hydrocarbons Law (See the legally binding, official Spanish version here), as well its Model Production Sharing Contract (MPSC).  There is also an official Spanish version of the MSPC

            The energy industry in Equatorial Guinea is government-dominated.  The preliminary recital of the Hydrocarbons Law states: “The fundamental Law of the Republic of Equatorial Guinea consecrates and designates as the property of the people of Equatorial Guinea all resources found in our national territory, including the subsoil, continental shelf, islands, and the Exclusive Economic Zone of our seas. It is by the mandate and delegation of the people, to whom these resources legitimately belong, that the Government undertakes to manage them.

 

Equatorial Guinea Snapshot
 
Central Energy Laws Hydrocarbons Law
Sample Contract Model Production Sharing Contract
Energy Agency Ministry of Mines, Energy & Industry
Energy Minister Marcelino Owono Edu

The MPSC includes a mandatory provision, §12.1, which is called “Obligation to Supply Domestic Market.”  In the section it is stated that “[i]n accordance with the Hydrocarbons Law, the Contractor shall meet as a priority the needs of domestic Hydrocarbon consumption in Equatorial Guinea.”

Any future LNG projects in EG would likely necessitate including the national oil company, Sonogas, as a consortium partner.  The Hydrocarbons Law and EG’s past actions make it clear that Sonogas would require equity participation in Chapter XVIII, Article 82 of the Hydrocarbons Law: “Article 82. Subject to Article 18, the State is entitled to invest or participate in any Contract Area, the terms of which shall be negotiated between the Ministry and each Contractor and clearly set forth in all contracts. When the State invests or participates in a Contract Area its right to a share of Hydrocarbons in respect of such investment or participation is in addition to its right to receive Royalties and a percentage of Hydrocarbons as provided for under Article 81.
           
The current Minister of Mines, Energy, and Industry (MMIE) is Marcelino Owono Edu.

 

 

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