Equatorial Guinea plans to increase oil output in 2020 by adding 20K bpd

Equatorial Guinea is set to add 20,000 barrels per day of oil production by October 2020. This addition is intended to augment production to 140,000 barrels per day (bpd), reveals Minister of Mines and Hydrocarbons, H.E. Gabriel Obiang Lima said on Sunday.

"We expect an increase this year of around 20,000 bpd additional because of the new discoveries," the minister said.

Noble Energy, Trident Energy and Kosmos Energy have made recent offshore discoveries in Equatorial Guinea that are expected to yield positive results in the country's efforts to boost oil production – and will continue appraisals throughout the year.

A member of the Organization of the Petroleum Exporting Countries (OPEC), Equatorial Guinea currently produces 120,000 bpd. H.E. Gabriel Obiang Lima also pointed out that up to 5 additional blocs will be put up for licensing in April and the construction of two refineries. These are likely to process up to 40,000 bpd of crude oil that is expected to be up and running by the end of the year.

In Equatorial Guinea's budget for 2020, the oil prices is forecast at USD 51 a barrel. The Minister also cited agreements and memorandums of understanding for two new oil refineries would be announced in April. "In April we are probably going to announce new blocks that will be put for licensing...it will be direct negotiations… they are about four to five blocks," he added.