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Country Profile of
Conventional and Renewable Energies:

Republic of Equatorial Guinea

Last updated on 15/09/06

Prepared by

Maria-Evangelia Kaninia
Intern from August to …, 2006

For the

Department of Economic and Social Affairs

Statistics Division
Energy Statistics Section
United Nations, New York
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1 Executive summary
Equatorial Guinea has seen a windfall of oil revenues since 1995. The country currently
ranks 6th in terms of oil production in Africa. The impressive revenues generated, though, have
hardly ameliorated the poor living conditions of the majority of the half million inhabitants. The
government has been accused of corruption and international agents are pressing for reforms to
guarantee transparency in the handling of oil revenues. Gas is also an important commodity.
Although in the beginning gas was simply disposed of, now infrastructure is being built to
monetize it, by liquefaction or methanol production.
Little has been done to promote renewable energy sources. There is potential for further
hydro plants (which already generate a small percentage of electricity), however the government
does not seem to be prioritizing non-directly oil-related infrastructure, especially when
conventional fuels are readily available.
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2 Introduction and Overview

2.1 Brief Country Facts (source: [CIA])
2.1.1 Geographical data
- Location: Western Africa, bordering
the Bight of Biafra, between
Cameroon and Gabon
- Surface area: 28,051 sq km (no
water surface – comprises mainland
portion plus five inhabited islands –
capital situated on the largest of
them), in total slightly larger than the
island of Sicily
- Terrain / topography: coastal plains
rise to interior hills; islands are
volcanic; a map detailing the
partition of the petroliferous offshore
areas among the neighbouring
countries can be found at [EQOILa]
- Climate: tropical; always hot, humid

2.1.2 Population
- Total population: about 540 Figure 1 Map of Equatorial Guinea
thousand (July 2006 est.), [CIA]
dominated by the younger ages
- Growth rate: As of 2006, estimated at 2.05%

2.1.3 Political situation

Independence was gained in 1968 after 190 years of Spanish rule (thus Spanish as the
official language). The first elected president created a single-party state and secured his power
by terror, inflicting catastrophical results on the country (it suffices to say that one-third of the
population either left the country or died). The current president seized power in 1979 in a coup
and has maintained it since then through disputed electoral procedures, although the country
nominally is a democracy since 1991. The president exerts virtually total political control, his circle
of advisors being largely drawn from his family or his ethnic group (source: [STA]). The discovery
of large offshore oil reserves led to increased windfall revenues from oil production since the mid
nineties (see the evolution of the GDP in Figure 2), despite which the population’s living
standards have hardly ameliorated.

2.1.4 Economical situation

The exploitation of large oil reserves which started in 1995 have contributed to dramatic
economic growth in recent years. The government has stated its intention to reinvest some oil
revenue into the currently neglected sector of agriculture, despite which the primary sector
remains sluggish. GDP not directly owed to oil revenues (did not exceed 10% for 2005) is
associated to the oil industry (infrastructure and construction) (see [IMFb]). Corruption and
mismanagement (businesses are mostly owned by government officials and their relatives) led to
the disruption since 1993 of a number of aid programs sponsored by the World Bank and the
IMF, for which the country is no longer eligible because of large oil revenues (source: [CIA]). The
aforementioned report [IMFb], however, commends the government on achieving certain reforms
that enhance transparency. A report published by the IMF ([IMFc]) specifically mentions
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“establishment of a clear fiscal policy framework for management of petroleum wealth” and
“reporting and reconciliation of oil revenue flows” as priority targets.
The country also has significant still undeveloped mineral resources.

GDP evolution (source: [EIU])

14 180
160
12
140
10
120
8 100

6 80
60
4
40
2
20
0 0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Real GDP (PPP US$ at 1996 prices) GDP PPP US$ [IMFa] (%change)

Figure 2 GDP evolution (source: [EIU])

2.1.4.1 Vital statistics (2005 estimation, [CIA])

- GDP (PPP): $25.7 billion (the industrial (primarily oil) sector dominates with a contribution
of over 90%); $18.8 billion according to the IMF database (see [WEO]); $20.0 billion
according to [EIU]
- GDP growth rate: 18.6%, projected by the [IMF] to reverse the current growth trend this
year (2006) by falling to -1.0% and to resume growth in 2007 with 9.4%; according to
[EIU] the growth rate will only fall slightly to 8.1% in 2006
- GDP (PPP) per capita: $47,600; $34,800 according to [WEO]; $37,000 according to [EIU]
- Inflation rate (consumer prices): 5%
- Main exports: petroleum, methanol, timber, cocoa (to the US [24.6%], China [21.8%],
Taiwan [11.2%], Spain [10.9%] and others)
- Main imports: petroleum sector equipment, other equipment (from the US [24.6%], Italy
[20.3%], France [12.2%], Spain [10.7%] and others)

2.2 Overview of the Energy Sector

Since a detailed energy table is not provided by the major data sources, the following
simplified table was compiled:
000
2003 [EIAa] bbl/d 000 bbl/d bcf m kWh

combustible
crude oil renewable
oil products gas hydro and waste electricity
Inland Production 206.5 81.2 ? ?
Imports 0.0 1.2 0.0 0.0
Exports 206.0 0.0 0.0 0.0
TPES 0.5 1.2 17.7 ? ? 0.0
Transformation Processes 0.0 ? 14.1 ? ? 25.0
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TFC ? 3.5 ? 23.0

electricity generated in m
kWh 22.0 3.0 ?

2.2.1 Sector Organization

According to the official site (see [EQOIL]), “the Ministry of Mines, Industry and Energy is
the regulatory and legislative agency which has responsibility for all matters relating to minerals,
petroleum, industry and energy supplies”.
In October 2002, the government launched a national oil company, GEPetrol, under the
aforementioned Ministry (source: [STA]1). It was established as the primary state-run institution
responsible for the country's downstream oil sector activities. Its primary focus has become
managing the government's interest stakes in various Production Sharing Contracts (PSC) with
foreign oil companies. GEPetrol also partners with foreign firms to undertake exploration projects
and decides on the country's environmental policy implementation (”…is responsible for
environmental policy and implementation…”) according to [EQOIL]. Plans to increase the
government's stake in new and existing PSCs have been discussed, but not formally pursued.
The fact that the IMF requests, through its 2005 report on fiscal transparency ([IMFc])
“clarification of the mandate and corporate governance structure of the national oil company
GEPetrol” confirms the corruption reports (see [TI05]).

2.2.2 Production, trade and consumption of commercial energy

2.2.2.1 Oil
[EIA] quotes a figure of 1.77 billion barrels of total proved reserves (approximately 2‰ of
the world reserves) located in the hydrocarbon-rich Gulf of Guinea and provides a detailed
overview of the fields (see 5).
The major breakthrough was the 1995 discovery of the Zafiro field (an offshore field
located off the Isla de Bioko; currently exploited by ExxonMobil, this field contains over 400m bbl
in recoverable reserves of high-quality crude, with daily output at 270,000 bbl/d). The Ceiba Field,
another offshore field (estimated reserves at 300-800m bbl, current daily output at 40,000 bbl/d)
ranks second. It is operated primarily by Amerada Hess, partnered by Tullow Oil and state-run
GEPetrol. An expansion project designed to expand the output to 60,000 bbl/d is bound to come
on-stream in 2007. The third major field is Alba, also located offshore, off Isla de Bioko. Recent
exploration has upgraded the estimated reserves to 1 billion boe of combined oil and gas. This
field is differentiated in that it produces mainly condensates and gas (see 2.2.2.2). The current
output is 65,000 bbl/d. The field is operated by Marathon Oil (63%), in partnership with Noble
Energy (34%) and GEPetrol (3%).
The total oil production culminated at 356,000 bbd/d2 in 2004 only to be restricted by the
government for reasons of stability (namely, avoiding further inflationary pressure) for the
following year. Equatorial Guinea ranks as the third largest producer of crude oil in sub-Saharan
Africa, after Nigeria and Angola.

1
Note that this source erroneously refers to the ministry as “Ministry of Mines and Hydrocarbons”.
2 th
This quantity includes gas condensates. Equatorial Guinea ranks 6 in Africa in terms of oil
production.
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Figure 3 Oil production ([EIA]): In 2004 the government requested that a cap be put
on oil production at 350,000 bbl/d in order to avoid destabilization of the economy.

2.2.2.1.1 Downstream sector

The domestic consumption of oil (mainly as a fuel for transport3) is estimated at 2,000
bbl/d (negligible in relation to the production in terms of energy content) and is covered through
importation (because of lack of refineries) of distilled products. The distribution of petroleum
products is privatized ([STA]).
Infrastructure is prioritized; in this context, the oil port Luba became operational in 2002,
while another port in the capital Malabo is under construction by means of a Build Operate
Transfer scheme ([EIA]).

2.2.2.1.2 Exploration and Field Development

Current exploration activities are described at [EIA]. A license map, showing the blocks
and the corresponding concession holders is available at [EQOILb], while ongoing activities are
detailed at [EQOILc].
As reported by [EIA], a new licensing round for offshore acreage is in process, in which
China (through the China National Offshore Oil Company) already has established rights
(February 2006). Additional international companies are interested in obtaining exploration rights.
Details about the procedure can be found at the dedicated site [EQOIL06].

2.2.2.1.3 Section Organization

See 2.2.1 for the authorities governing the energy sector.
An overview of the type of contracts currently in use can be found in [MBENDI]. [EQOILc]
summarizes the Decree Laws of 1981, 1988 and 2001 that form the legal framework of the oil
industry.
Furthermore, [STA] mentions that these contracts (Production Sharing Contracts) were
updated in 1998, thus increasing the government oil revenues as a percentage of total oil export
earnings to 20% (by international standards, this percentage is still small).

3
The balance published at [EIAa] gives the following share for the consumption of oil products for
2003: 65% diesel, gasoline and kerosene equally sharing the remaining.
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2.2.2.2 Gas
[EIA]4 quotes a figure of 1.3 trillion cubic feet of proven (offshore) natural gas reserves as
of January 1, 2006 (although this figure is subject to being revised upwards, owing to new
exploration activities, it is still a tiny fraction of the approximately 500 trillion cubic feet (source:
[EIAb]) of African reserves). The reserves are mainly located in the Alba gas field (situated on the
Isla de Bioko), whose interests belong to Marathon oil, in conjunction with Noble Energy and the
state-run GEpetrol. The production became substantial in 2002 (reaching 45 billion cubic feet)
and is domestically consumed in its entirety.
bcf
Gross Production 81.2
Vented and Flared 60.0
Reinjected 3.5
5
Marketed Production 17.7
Dry Production 3.5
Dry Consumption 3.5
Figure 4 Detailed table for gas production, year 2003, source: [EIAa]
A liquefaction facility operated by Marathon (see [MAR]) is scheduled to come on-stream
in late 2007. The LNG produced will be exported to the US, via pre-established agreements.
Marathon holds a 75% stake on this project, with the state holding the remaining percentage (see
2.2.2.2.1 for the sector organization). According to the contract, the output will be 3.4 million
metric tons (equivalent to 165 billion cubic feet – more than triple the current gas output in
gaseous state) per year over 17 years.
Methanol is produced by AMPCO6 at a complex situated on Bioko Island. The plant was
conceived as a means to monetizing the gas contained in the Alba oil-field, which until then only
produced condensates and vented or flared the remaining gas. Commercial production started in
2001. Nominal capacity is (according to the company site [AMPCO]) 2,500 metric tons per day,
achieving 900,000 metric tons per year (in energy content) or 3% of the world methanol supply
([NOB]). In other words (assuming efficiency of 70% for the production process), this plant
absorbs about 24 bcf of previously wasted natural gas, which amounts to one third of the quantity
vented/ flared in 20037.

2.2.2.2.1 Sector Organization

As of January 2005, gas assets management and development of the domestic gas
market fall under the jurisdiction of the state-owned Sonagas (see [EQOIL]). In addition, the
government decreed that Sonagas should acquire stakes in all natural gas related projects
developed in the country. Indeed, Sonagas participates with 10% in the methanol production
plant, the LPG plant in Punta Europa (supplied from the Alba field) and the still under construction
LNG plant.

2.2.2.3 Electricity
Data for 2003 ([EIA]) provide a figure for electricity production at 30 million kWh
(consumed domestically, after allowing for losses), equivalent to only 55 kWh per capita (indicator

4
The data provided by [EIA] is self-contradictory, since the country analysis brief mentions that
production for 2003 was at 45 bcf. At the same time, the detailed energy balance for the same year ([EIAa])
reports the marketed production at 18bcf and the dry gas production at 4bcf. The fact remains that the gas
reserves are still being under-exploited, which will be corrected as new projects come into existence.
5
Includes the quantity that serves as input to the methanol production plant, see below.
6
Atlantic Methanol Production Company, co-owned by Noble Energy and Marathon Oil Company
(45% each, while the state gas company owns the remaining 10%).
7
It is reasonable to assume that the difference between the Marketed Production and the Dry Gas
Production in Figure 4 accounts (allowing for errors in data collection) partially for the input to the methanol
production process.
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of poor development indices). The current generating capacity is estimated by EIA at 130 MW8
(combination of hydroelectric and thermal plants – both in the mainland and the insular part of the
country), although the country energy balance for the year 2003 (available at [EIAa]) gives a
figure of 18MW9. Small-sized backup generators fuelled with diesel or other oil products are
widespread.
The partition of capacity between the island of Bioko and the mainland part is unequal,
with the mainland only accounting for about 5 MW (including 1 MW of hydroelectric energy).
Expansion of the generating capacity follows the discovery of fuel sources. Thus the
Punta Europa plant (initially operated in 1999 with an output of 10 MW, later extended to 28 MW
– constraints on output are being imposed by the capacity of the pre-existing transmission line)
on the Isla de Bioko is supplied with natural gas from the Alba field. Also, a 4.6 MW at the
AMPCO methanol producing unit is under construction.
Network: The transmission and distribution network is divided in the mainland part
(serving the suburbs of Mobo) and the insular part (linking the capital Malabo to the port Luba),
totaling 80 miles of high tension lines.

2.2.2.4 Sector Organization

The state-run monopoly (SEGESA – which the government has tried to privatize without
success) owns and operates the electricity sector, including the network. Power supply is
unreliable due to bad management and outages.

2.2.3 Household/Commercial Access to Electricity

No data has been found.

2.2.4 RE targets and commitments

No official commitment declaration has been found. However, the country has ratified10
the Kyoto Protocol. Present emissions of greenhouse effect gases are low, due to the unequal
distribution of revenues and the resulting poverty among the vast majority of the population. The
government, therefore, does not seem motivated to focus on emission-reducing measures.

3 Analysis of Renewable Energy Sector11

3.1 Analysis of Different Types of Renewable Energy
3.1.1 Hydro
3.1.1.1 Resource potential
The [STA] report mentions that the country has 2,600 MW of hydropower potential.
[MBENDI] mentions that “Equatorial Guinea is estimated to have 11,000 MW of hydropower
potential, of which 50% is deemed economically recoverable” (the size of the estimated potential

8
Clearly, if this figure is correct, then the figure for the generated electricity is erroneous, since it
would mean that the plants only have a utilization rate of 3%. [STA] mentions that “estimations vary”;
according to this source, 15.4 MW is the certain installed capacity and 5-30 MW is the additional
“undeclared” capacity.
9
The EIA acknowledges that the figures provided are probably underestimated. Thus, the country
energy balance at [EIAa] estimates the installed capacity at 18MW, while the associated brief gives an
estimate at 12MW (which it subsequently upgrades to 130MW). The electricity generated should similarly be
upgraded follow these figures.
10
As can be seen in the Status of Ratification as published on http://unfccc.int.
11
A general assessment of the RE sector in Africa can be found in [RENAFR].
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makes it obvious that it refers to the mainland part of the country and the Rio Muni). However, no
cross-reference has been found.

3.1.2 Wind
According to a study realized by Hélimax Énergie ([HEL]) on behalf of the African
Development Bank, Equatorial Guinea has no significant potential.

4 References / Sources
- [CIA] https://www.cia.gov/cia/publications/factbook/geos/ek.html, CIA World Factbook,
accessed on 01/09/06
- [EIA] http://www.eia.doe.gov/emeu/cabs, Energy Information Administration, Country
Analysis Briefs, accessed on 01/09/06, report updated in May 2006
o [EIAa] http://www.eia.doe.gov/emeu/world/country/cntry_EK.html, detailed
country energy balance by type of energy commodities (year 2003), accessed on
07/09/06
o [EIAb] International Energy Outlook 2006, available online at
http://www.eia.doe.gov/oiaf/ieo
- [EIU] http://www.eiu.com, Economist Intelligence Unit, accessed on 05/09/06
- [AFREN] http://www.africa-energy.com/html/public/data/eq-guinea.html, accessed on
10/09/06
- [HEL] Strategic study of Wind Energy Deployment in Africa, published in March 2004, by
Hélimax Énergie, available online at http://www.afdb.org
- [STA] http://www.state.gov/r/pa/ei/bgn/7221.htm, State Department, Background,
accessed on 05/09/06
- [MBENDI] http://www.mbendi.co.za/indy/oilg/af/eq/p0005.htm, “Equatorial Guinea: Oil
and Gas” report, accessed on 05/09/06
- [AMPCO] http://www.atlanticmethanol.com/, accessed on 07/09/06
- [MAR] http://www.marathon.com, Marathon Oil Corporation, Our_Business>
Marathon_Oil_Company> Integrated_Natural_Gas> Liquefied_Natural_Gas and
Equatorial_Guinea, accessed on 07/09/06
- [NOB] Noble Energy, http://www.nobleenergyinc.com/neiweb/international.htm#eg,
accessed on 08/09/06
- [WRI] http://wri.org/, World Resources Information, Earthtrends, Searchable Database,
accessed on 08/09/06
- [TI05] Corruption Perceptions index 2005, available online at
http://www.transparency.org/policy_research/surveys_indices/cpi/2005, accessed on
17/09/06
- [EQOIL] http://www.equatorialoil.com, accessed on 08/09/06
o [EQOILa], Petroleum > Technical Review
o [EQOILb] Petroleum > License map, License map showing exploration wells,
May 2006
o [EQOILc] Petroleum > Activity map, Activity map, May 2006
- [EQOIL06] http://www.equatorialoil.com/2006-round/ accessed on 12/09/06, site
dedicated to the 2006 licensing round
- [WEO] http://www.imf.org/external/pubs/ft/weo/2006/02/data/index.htm, World Economic
Outlook Database, September 2006 Edition, accessed on 17/09/06
- [IMF] http://www.imf.org, International Monetary Fund, Country Info, accessed on
14/09/06
o [IMFa], WORLD ECONOMIC OUTLOOK Database, April 2006, accessed on
15/09/06
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o [IMFb] http://www.imf.org/external/np/sec/pn/2005/pn0561.htm, Public

Information Notice (PIN) No.05/61, May 6, 2005, “IMF Executive Board
Concludes Article IV Consultation with Equatorial Guinea”, available online
o [IMFc] Report on the Observance of Standards and Codes (ROSC), Fiscal
Transparency Module, April 18, 2005, available online

5 Annex

Figure 5 Map of offshore exploration activities by Marathon Oil

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Figure 6 Map of Exxon - largest operator (71%)- operations; map available at the
company site