Equatorial Guinea signs deal with Chevron to boost state role in Aseng gas project

Equatorial Guinea has taken a major step to strengthen its gas sector by signing a new financing agreement for the Aseng Gas Project, the African Energy Chamber (AEC) said in a media release on February 2.

The Ministry of Hydrocarbons and Mining Development and US supermajor Chevron (NYSE:CVX) have signed a Heads of Agreement (HoA) that supports greater state participation through the national oil company (NOC) GEPetrol. The deal focuses on funding GEPetrol’s expanded role in the project and speeding up development across the country’s wider Gas Mega Hub strategy.

Under the agreement, GEPetrol will raise its stake in the Aseng Gas Project from 5% to 32.55%. This gives the state a much stronger position in managing and benefiting from its natural gas resources. The gas produced from Aseng will not only support the field itself but will also help to unlock a range of related projects.

These projects comprise new upstream and downstream developments, including the Alen Tail and Yoyo-Yolanda projects, additional drilling in Chevron-operated blocks, and potential cross-border gas flows using existing Gulf of Guinea pipeline systems. “In this context, the HoA functions as an enabler, unlocking a portfolio of projects rather than advancing a single field,” says the AEC.

A key benefit of the deal is the long-term supply of gas to the Punta Europa industrial complex. This allows Equatorial Guinea to make better use of its existing LNG and gas processing facilities. Using current infrastructure lowers costs, reduces the risk of gas being left undeveloped, and improves the country’s position as a regional gas hub at a time when flexible LNG supply is increasingly important.

“This agreement represents a strategic step forward for our energy sector, enhancing national participation and opening the door for further projects that will drive industrial development, create jobs and strengthen energy security for our country and the region,” said Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development of Equatorial Guinea.

According to the AEC, the HoA sends a clear signal on Equatorial Guinea’s policy direction to investors. It shows strong coordination between the state, the NOC and a major international operator, as well as a willingness to use flexible financing to move projects forward.

“As global gas markets prioritise reliability, infrastructure access and regional integration, Equatorial Guinea’s approach positions it as a stabilising supplier in the Gulf of Guinea,” the AEC said in the statement. “The Aseng HoA does not merely strengthen GEPetrol’s balance sheet position; it reinforces the country’s ability to convert gas resources into industrial growth, export capacity and cross-border energy cooperation.”

Equatorial Guinea, OPEC’s smallest member, has been an LNG exporter for almost 20 years. The Aseng project is operated by Chevron, with partners GEPetrol, global commodities producer and trader Glencore (LSE:GLEN) and Switzerland-based private energy trading company Gunvor Group.