EG-11 block lies adjacent to billion-barrel Zafiro field
ExxonMobil (ticker: XOM) announced today that it has signed a production sharing contract with the government of Equatorial Guinea for developing a deepwater block. Exxon’s wholly owned affiliate, Exploration and Production Equatorial Guinea, will develop the block.
The contract concerns the EG-11 deepwater block, which covers about 307,000 acres, is located 36 miles west of Malabo, the capital of Equatorial Guinea. ExxonMobil will own an 80% working interest in the block, and will be the operator. GEPetrol holds the remaining 20%. Included in the contract is the obligation to acquire new 3D seismic data and reprocess existing data. In addition, ExxonMobil will “work with the government of Equatorial Guinea to further develop the national workforce.”
The EG-11 block is adjacent to the existing Zafiro offshore field. ExxonMobil operates Zafiro with a 71.25% interest, while GEPetrol holds 23.75% and Equatorial Guinea has 5%. This field was discovered in 1995 by the Zafiro-1 well. Since then, Exxon reports that the field has produced more than 1 billion barrels, and is still producing. Zafiro is in water depths between 400 and 2,800 feet.
