American ExxonMobil plans to exit Equatorial Guinea when its license expires in 2026

(Ecofin Agency) – A number of multinationals have announced in recent months their intention to dispose of some of their African assets, which are considered highly ineffective due to their aging status.

Sources close to US oil major ExxonMobil revealed on Tuesday (Nov 29) that the company plans to dispose of oil and gas assets in Equatorial Guinea when its license expires in 2026. Until then, the company plans to reduce its production in the country.

The decision would be in line with the group’s climate commitments, which have indicated its desire to reduce its carbon emissions by 2050. According to Gail Anderson, research manager for sub-Saharan Africa at Wood Mackenzie, the selection will also be explained, say “high cost” ExxonMobil’s portfolio of assets in Guinea.

In fact, after reaching just 300,000 bpd in 2011, ExxonMobil’s black gold production in the country continues to decline, reaching 100,000 bpd in 2021.

Since then, the company has multiplied initiatives aimed at selling its interests in the country. For example, in 2020 it began selling its stake in Zafiro, a producing oil field located in deep water in Block B, and divested its staff from the Serpentina platform that operates its perimeter.

It should be noted that all these activities are part of the broader movement underway in the hydrocarbon sector in Africa. Apart from ExxonMobil, its compatriot Chevron and Anglo-British Shell have also moved to sell some of their assets, particularly in Nigeria.

Abdel-Latif Pourima

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