Exxon Mobil will reduce oil production in Equatorial Guinea and leave the west African country after 2026. Exxon has cut its output in the country to less than 15,000 barrels of oil per day (bpd) through existing production unit Serpentina, one of the sources said on Monday on condition of anonymity to discuss non-public information.
Exxon Mobil to Scale Down Oil Production in Equatorial Guinea
According to sources, Exxon Mobil will wind down oil production in Equatorial Guinea and leave the West African country after its license expires in 2026.
The departure reflects a wider move by major oil producers to reduce crude production in West Africa and shift investments to lower-carbon natural gas development on the continent, and to more lucrative projects in the Americas.
"It is a high-cost region where carbon emissions are a problem as well," said Gail Anderson, research director for Sub-Saharan Africa at energy consultants Wood Mackenzie.
Exxon has cut its output in the country to less than 15,000 barrels of oil per day (bpd) through existing production unit Serpentina, one of the sources said on Monday on condition of anonymity to discuss non-public information. It evacuated staff from the offshore production platform Zafiro this year due to water entering the aging vessel.
Europe, which has been looking for alternative oil suppliers after sanctions were imposed against Russia this year, is the main destination for Equatorial Guinea's oil exports.
Exxon's oil output in Equatorial Guinea, a member of the Organization of the Petroleum Exporting Countries (OPEC), peaked at more than 300,000 bpd eight years ago and has been declining since. Exxon has been trying to sell its Zafiro operation since 2020. The company last year pumped about 45,000 bpd in Equatorial Guinea, out of the country's total production of 93,000 bpd.
Africa is struggling to meet OPEC quotas due to the lack of investments in crude production. Output from its top two producers, OPEC-members Angola and Nigeria, sank by a third to 2.1 million bpd in October from 3.2 million bpd in 2019. Since 2013, it has declined 41%.