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Equatorial Guinea waives fees for oil and gas service companies

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Oilfield Technology,


The Ministry of Mines and Hydrocarbons (MMH) of the Republic of Equatorial Guinea has decided on the waiving of its fees for services companies in the country. This is the first action to be taken to support oil and gas services companies in Equatorial Guinea in the wake of the oil price drop caused by the coronavirus pandemic. Oil prices currently remain at around US$20/bbl, their lowest level since 1991.

“The Ministry of Mines and Hydrocarbons took the unanimous decision to waive its fees for services companies for a duration of three months,” declared H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons. “We recognise that the oil sector continues to be the largest private sector employer in the country and want to give our local services companies the means to weather the storm and avoid any jobs being lost. While it is important to let market forces determine the future, the government does have a role to play in stimulating the market and creating an environment for these companies to stay strong, continue investing and create opportunities for our citizens,” he added.

International operators will need to keep complying with local content requirements in Equatorial Guinea throughout the downturn, and make sure to work with the local services industry to adapt to new market dynamics. This is the first such measure to be taken in Equatorial Guinea, which will consider additional action to bring relief to its oil and gas sector.

The ongoing coronavirus pandemic and low oil price has brought considerable instability to African oil producers in the Gulf of Guinea.

Obiang Lima has pledged to purchase 1.2 million coronavirus lab kits so that the Ministry of Health can deal with any potential future cases.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/24032020/equatorial-guinea-waives-fees-for-oil-and-gas-service-companies/

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