Italy's Eni wins exploration rights for oil, gas blocks off Guinea

Italian energy giant Eni has signed an oil and gas exploration deal with non-producing Guinea, the company confirmed June 3, building on similar deals with Sierra Leone and Equatorial Guinea in recent months.

In a message to Platts, part of S&P Global Energy, a spokesperson for Eni said the company had secured reconnaissance permits for 15 blocks off the coast of Guinea, which sits between Sierra Leone and Guinea-Bissau in West Africa.

The deal, signed with Guinea's Ministry of Water and Hydrocarbons in Conakry, is valid for one year and can be extended to two.

According to an update in Guinea's government gazette seen by Platts, the deal covers offshore blocks A4, A5, B4, B5, C3, C4, C5, D2, D3, D4, E2, E3, E4, F2 and F3, covering a total area of about 49,089 sq km. Eni was represented in the signing by exploration director Aldo Napolitano, the government said.

The agreement ends a prolonged exploration hiatus in the Guinean offshore and reflects rising industry interest in the so-called MSGBC basin, comprising Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry.

Huge hydrocarbon discoveries, including the Greater Tortue Ahmeyim gas field on the Senegal-Mauritania border and Woodside's Sangomar oil project, have put the frontier region on the exploration map.

TotalEnergies previously signed a technical agreement with Guinea but later relinquished it.

The country, a major hub for bauxite, iron ore and gold mining, does not have an oil refinery and relies on imported refined products. According to data from S&P Global Commodities at Sea, it imported 71,000 b/d of fuel in May, most of it gasoline, gasoil/diesel and jet fuel.

The Guinea deal follows similar agreements Eni signed with Sierra Leone in November and Equatorial Guinea in February, both of which could lead to new country entries for the Italian company.

Eni has an extensive footprint across West Africa, from the Republic of Congo to Cote d'Ivoire, where its key Baleine oil and gas project transformed the country into an energy exporter, with first oil just two years after discovery.

The deals also follow similar recent agreements signed by Chevron, ExxonMobil, TotalEnergies and others in frontier basins in West Africa, with some industry insiders pointing to an exploration renaissance following wars in Ukraine and Iran, which have roiled energy markets.