Equatorial Guinea
More oil found off Equatorial Guinea

afrol News, 4 June - Another important oil discovery 30 kms off the Equatorial Guinean coast was announced today. President of the US-based Triton Energy Ltd., James C. Musselman, says the discovered 'Okume' oil field "could hold gross recoverable reserves of 25 to 250 million barrels." Operator Triton co-operates with the Cape Town based Energy Africa on the new field. 

- The aggregate gross recoverable oil of the greater Okume area could be very significant, potentially more than the Ceiba field, Musselman said. Triton Energy is currently producing about 45,000 barrels per day of oil from the company's huge Ceiba field.

- Obviously, we are very early in the process of evaluating the size of the new field, but, prior to drilling the Okume-1, we estimated the prospect size to be 25-250 million barrels of gross recoverable oil, Musselman added. "Importantly, the well was the first test of several similar prospects in the same area ... The aggregate gross recoverable oil of the greater Okume area could be very significant, potentially more than the Ceiba Field." 

Oil production in Equatorial Guinea, which started only four years ago, was booming already before the discovery of the Okume field. According to official numbers, the oil production in Equatorial Guinea already has reached 200,000 barrels a day. 

With an oil production of 200,000 barrels a day, the country reaches one tenth of the Nigerian production (2,132,000 b/d according to the last OPEC quota). However, it has only 0.4% of Nigeria's population (450,000 as to Nigeria's 120 million). The oil production has had major impacts on the national economy, tripling the GDP within four years.

The new Okume-1 well, named after one of the most valuable timbers in Equatorial Guinea, was drilled at an approximate cost of US$ 5.5 million to a total depth of 7,064 feet in approximately 1,604 feet of water. It is located 29 kilometres off the continental coast of Equatorial Guinea, Triton informs. 

Triton has an 85% working interest in and is the operator of Block G and the adjacent Block F offshore Equatorial Guinea, which together encompass an area of approximately one million acres. Triton's Ceiba Field is located in Block G of the Rio Muni Basin, about 22 miles offshore and 150 miles south of the country's old capital, Malabo, and off the shore of the new capital Bata. 

Triton's partner in the blocks, Energy Africa Ltd. of South Africa, has the remaining 15% working interest. The government of Equatorial Guinea has a 5% carried participating interest in Ceiba Field production and will have a 5% carried participating interest in production from the Okume discovery if it is confirmed to be commercial, according to a Triton statement. 

The new Okume Field, seemingly even more promising than the Ceiba Field, therefore may provide another major boom to the country's revenues. Equatorial Guinea could head for the title of "the African Kuwait". 

In Equatorial Guinea, where this new oil income should, in theory, insure a comfortable life for all, President Teodoro Obiang Nguema Mbasogo has repeatedly pledged not to repeat the mistakes of neighbours, like Nigeria and Gabon, "that have squandered huge amounts of export earnings."

The reality is, however, not so gloomy. All independent sources, from the Guinean opposition to the human rights agencies of the UN and the US, confirm that oil revenues only benefit the small ruling clan close to President Obiang, who rules the country as his own, personal property. 

Despite having the second high GDP per capita in the region (after Gabon), the living standard of the majority Equatorial Guineans remains the poorest in the zone. No positive trends in this respect have been noted since the oil boom started in 1997.

Triton Energy, meanwhile, is also heading for the skies. Its shares rose nearly 14 percent Monday on the New York Stock Exchange after the company announced its new, important discovery. The Ceiba Field has been a 'gold mine' for Triton, and was commerialised in a record 14 months after its discovery. Also South African partner Energy Africa (15%) today announced the discovery with great expectations. 

Sources: Triton Energy and afrol archives 

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