Equatorial Guinea is moving forward with its previously announced plan to build a modular crude oil refinery in Punta Europa, Malabo, on Bioko Island (OGJ Online, Apr. 24, 2020; Dec. 19, 2019).
VFuels LLC, Houston, has completed execution of a feasibility study for construction of the proposed refinery project, which will cost between $55-76 million, Equatorial Guinea’s Ministry of Mines and Hydrocarbons (MMH) said via a Sept. 19 release from the Equatorial Guinea Press and Information Office.
With the feasibility study now completed, MMH said within the next few weeks it will begin talks with interested investors in hopes of signing a heads of agreement for the project in December 2020.
Based on the current timeline and pending selection of investors, the government of Equatorial Guinea—which also will hold interest in the project as well as provide fiscal incentives for interested partners—plans to reach final investment decision on the project during first-quarter 2021, according to MMH.
To be operated by strategic partner Marathon Oil Co., the planned Punta Europa refinery will process 5,000-10,000 b/d of raw condensate from Alba and Alen fields and be implemented in two phases, the first of which will last 20-24 months, followed by a second 33-36-month phase, MMH said.
Details regarding specific work to be completed during the development phases were not disclosed.
The refining project comes as part of MMH’s initiative of the Year of Investment 2020, which is seeking investments for a modular refinery and storage tanks in the continental region, as well as promotion of other projects derived from methanol, among others.
Alongside enabling Equatorial Guinea to reduce its dependence on refined product imports, the proposed Punta Europa modular refinery project also will help avoid a reduction in the republic’s exchange reserves as well as provide higher-quality fuels to regional consumers produced from that domestic production, according to MMH.
