- Exxon Mobil Corp is set to wind down oil production in Equatorial Guinea.
- The departure reflects a wider move by major oil producers to shift investment to lower-carbon natural gas development on the continent.
Exxon Mobil Corp is set to 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 shift investment to lower-carbon natural gas development on the continent, reduce crude production in West Africa and drive lucrative projects in the Americas.
Exxon has cut its output in the country to less than 15,000 barrels of oil per day (bpd) through its existing production unit Serpentina. This year, it evacuated staff from the offshore production platform Zafiro due to water entering the ageing vessel.
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. Exxon has decided to decommission Zafiro and tow the platform away. It could recover some of Zafiro’s production and reach about 25,000-30,000 bpd by adding a third platform called Jade, pending government and company approvals.