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Following ExxonMobil’s exit from Equatorial Guinea, Nigeria’s role as a gas supplier has become pivotal in supporting the country’s offshore Gas Mega Hub. The hub, which produces liquefied natural gas (LNG) and methanol, relies heavily on feedstock transported via pipeline from Nigeria, strengthening energy collaboration between the two nations. This pipeline connection is crucial to Equatorial Guinea’s plans to enhance its gas production capabilities.
Chevron, a major player in the region, contributed $1.15 billion in taxes and shared oil production to Equatorial Guinea in 2023, outpacing its U.S. counterparts. In contrast, Marathon Oil paid $230 million, while ExxonMobil and Kosmos Energy contributed $189 million and $145 million, respectively. This financial backing supports the government’s efforts to boost energy output and attract investment.
Equatorial Guinea’s Hydrocarbons Minister Antonio Oburu Ondo highlighted the importance of regional cooperation, particularly with Nigeria, as the country prepares for the 2025 redevelopment of the Zafiro field. The field, which was a significant asset for ExxonMobil, will undergo a multi-phase revitalization process, further bolstering production.
In addition to oil exploration, Equatorial Guinea is reducing corporate income taxes and dividend taxes to attract more investment. This strategy, combined with its reliance on Nigerian gas, positions the country to expand its role in the global energy market while benefiting from Nigeria’s energy resources.
