Russia's Rosgeo signs hydrocarbons exploration contracts with Equatorial Guinea

Moscow — Russia's Rosgeo said Tuesday that it has signed its first contracts for hydrocarbons exploration work in Equatorial Guinea.

Rosgeo subsidiaries Zarubezhgeologia will carry out initial geological mapping, and Yuzhmorgeologia initial seismic work in the Rio Muni area of Equatorial Guinea. These contracts with the country's ministry of mines and hydrocarbons follow a memorandum of understanding signed by Rosgeo and the Equatorial Guinea ministry during the Russia-Africa Summit in Sochi last October.

"Such exploration activities will help in extending additional natural resources potential and reserves in Rio Muni, notably crude oil, natural gas and minerals. This falls under the increasing cooperation between Russia and the Republic of Equatorial Guinea, and will help in building a strong exploration base in the country," Gabriel Mbaga Obiang Lima, the country's minister of mines and hydrocarbons, said, according to a joint statement released by Rosgeo and the African Energy Chamber.

Rosgeologia is playing a significant role in Russia's bid to increase its involvement in African oil and gas projects. In the last year. the company has signed exploration deals with the Republic of Congo, Nigeria, Rwanda and South Sudan. Rosgeologia head Sergei Gorkov has also called for a fund to be set up to finance geological exploration in Africa.

"Russian geologists formed the basis of Equatorial Guinea's geological exploration industry back in the 1970s, and we are delighted to be reviving this successful collaboration and bring in world-class geological activities to the Rio Muni area," Rosgeo CEO Sergei Gorkov said, according to the statement.

Rosgeo and Equatorial Guinea have identified the Rio Muni area as one of the most promising exploration frontiers in the country. They expect increased exploration to help sustain and increase domestic oil and gas output, and identify additional mineral reserves that will help Equatorial Guinea further diversify its economy, according to the statement.

In November another Russian company, Lukoil, won a bid for block EG-27, a gas-rich block offshore Equatorial Guinea that contains the stalled Fortuna LNG project.

In mid-2018 Russian President Vladimir Putin said that Russia was aiming to increase its role in African energy projects. Part of this strategy included a major summit of African leaders in Sochi last October, which facilitated the signing of numerous cooperation agreements between Russian and African energy companies.