Facing a sharp production collapse and economic downturn, Equatorial Guinea is introducing flexible contractual terms to attract new investment into its oil sector.
Equatorial Guinea's production collapse is small relative to global supply, but the new hydrocarbon law could influence future investment in the region.
Equatorial Guinea will enact a new hydrocarbon law on Monday to revitalize its struggling energy sector. The move follows a drastic production decline from 140,000 barrels per day in 2020 to just 20,000 in September, contributing to a projected 1.7% economic contraction.
The country is seeking to reverse a severe production decline that saw output drop from 140,000 bpd to 20,000 bpd, aiming to attract investment through more flexible contract terms.