Since Ireland in 2018 became the first country to say it would divest entirely from fossil fuels, governments, activists, and agencies worldwide have begun reciting the same rallying cry: ban all financing on hydrocarbons development and production.
The idea of a blanket ban is intended to help reach net-zero ambitions and quell climate change. Proponents say that by reducing funding for oil, natural gas, and coal, more of it will stay in the ground and the world will be forced to switch to renewables for electricity and heat — regardless of whether the infrastructure and capacity exist to provide solar, wind, and hydropower equitably across the globe.
Just days before the start of Africa Energy Week 2021, November 9-12, in Cape Town, organized by the African Energy Chamber, in partnership with South Africa’s Department of Mineral Resources and Energy. We have made an important step to improve our hydrocarbons legislation as the oil and gas sector, accounts for more than 60% of Equatorial Guinea’s GDP.
Since 1996, the discovery and development of oil and gas have transformed the economy of Equatorial Guinea. Petroleum products account for the vast majority of our exports, more than 60% of our gross domestic product (GDP), and 80% of our fiscal revenue. Thanks to leveraging our hydrocarbon resources, we are proud to say we have the highest per capita GCP in Sub-Saharan Africa.
Like many other countries, however, GDP shrank during the COVID-19 pandemic, and investment retracted as well.
With the pandemic receding, at least for now, and the market returning, we must embrace the opportunity to restore our economy. Equatorial Guinea is endowed with huge hydrocarbon riches: 1.1 billion barrels of proved crude oil reserves and 1.3 trillion cubic feet of proved natural gas reserves. It will take more investment to get those resources produced and put to good use, not less.
With that in mind, Equatorial Guinea is revising our 2006 Hydrocarbon Law.
