Equatorial Guinea: new Chinese rules slow down the gas agreement with Fuhai

The agreement was supposed to be finalized last month. It involves the transfer by the British company Europa Oil & Gas of part of its interests in the offshore gas block EG-08 to Fuhai Energy.

The Barracuda project is part of Equatorial Guinea’s efforts to develop its offshore gas resources. The entry of a Chinese partner was expected to strengthen the financial and technical capacities mobilized around the permit.

However, the transaction is now facing new regulations implemented in China. These provisions slow down the approval process necessary for Fuhai Energy before the definitive conclusion of the agreement with Europa Oil & Gas.

Chinese approval still awaited

The Chinese company must obtain the green light from its provincial authorities before it can proceed with the Equatorial Guinean project. This administrative step delays the finalization of the transfer of participation in block EG-08.

No indication has been provided regarding when this approval might be granted. As long as the process is not completed, Fuhai Energy cannot fully engage in the planned operations as part of its involvement in Barracuda.

For Europa Oil & Gas, the agreement represents a shift in its presence in the Equatorial Guinean gas sector. The British company is looking to transfer part of its interests, while Fuhai Energy aims to increase its exposure to African energy resources.

The delays related to Chinese requirements do not necessarily jeopardize the project, but they do push back its implementation. The parties are still waiting for the decision from the relevant authorities, an essential prerequisite for the finalization of the transaction.