The Ministry of Mines and Hydrocarbons (MMH) in Equatorial Guinea has introduced a new Regulation of Petroleum Operations.
Known as Regulation No. 2/2020, it is designed to modernize the country’s oil and gas regulatory framework while maintaining its appeal to foreign investors.
It covers extensions of the productive lives of mature fields though mechanisms said to allow operators to generate greater value; exploration of marginal and onshore fields and investments in deep and ultra-deepwater acreage; monetization of gas, and further integration of the national workforce and local companies across the value chain.
The regulation strictly prohibits gas flaring, except under specific circumstances, also stipulating that field development and production plans must always be formulated to allow the use, conservation or commercial exploitation of associated gas.
It also clarifies new rules and frameworks concerning exploration and production from mature and marginal fields, the latter defined having produced 90percent of its proven hydrocarbon reserves.
Fields in these categories will benefit from 10-year contracts, renewable every five years after assessment by the MMH.