Equatorial Guinea has signed a Heads of Agreement (HOA) with ConocoPhillips to develop offshore Blocks B/4 and EG-27, a deal expected to unlock up to $9 billion in investment and support the country’s ambition to expand its role as a regional gas processing hub.
Antonio Oburu Ondo, Minister of Hydrocarbons for Equatorial Guinea. Image courtesy of African Energy Chamber.
The HOA, signed by ConocoPhillips alongside the Ministry of Hydrocarbons and Mining Development, national oil company GEPetrol, and state gas firm SONAGAS, outlines terms for advancing both blocks into development. The partners have six months to finalize Production Sharing Contracts, with the projects projected to deliver more than 20 years of production.
“These blocks will support production growth and unlock economic opportunities for decades to come,” said Hydrocarbons Minister Antonio Oburu Ondo. He emphasized that developing the assets efficiently could help restore national output to pre-2014 levels while maximizing long-term value.
Gas resource potential
Block EG-27 is estimated to hold as much as 2.8 Tcf of gas, while Block B/4 contains about 0.7 Tcf. Together, the blocks represent significant commercial discoveries capable of supplying new volumes to the Punta Europa complex, the country’s flagship gas processing and LNG export hub. Capital investment to bring the reserves online is estimated at $9 billion.
The agreement comes as Equatorial Guinea pursues its Gas Mega Hub (GMH) initiative, designed to monetize stranded and associated gas from domestic and regional sources. By channeling additional feedstock to Punta Europa, the ConocoPhillips partnership is expected to reinforce the GMH’s long-term viability and expand the country’s role in global LNG markets.
Strengthening gas infrastructure
ConocoPhillips’ involvement follows a series of milestones, including the export of the first LNG cargo from Punta Europa in June 2025. The HOA ensures further feedstock for the complex, which has become central to Equatorial Guinea’s strategy of transforming underutilized gas into export revenue, domestic power, and industrial development.
For the U.S. major, the deal underscores a growing footprint in African gas plays, with Equatorial Guinea positioning itself as a key partner. The projects are expected to generate hundreds of millions of cubic feet of gas per day once developed, supporting both national consumption and LNG exports.
Policy and investment outlook
The government is also preparing to launch its 2026 licensing round, introducing new exploration opportunities while reviewing hydrocarbons, tax, and labor laws to create a more competitive environment. By combining policy reform with upstream development, Equatorial Guinea aims to solidify its reputation as a stable, investor-friendly jurisdiction in Central Africa’s energy sector.
