Fast-track potential in Equatorial Guinea’s EG-08 block

Equatorial Guinea

William Holland, CEO and executive director of Europa Oil & Gas, talks to The Energy Year about preparing for drilling at the high-potential EG-08 block in Equatorial Guinea and the next steps in the company’s portfolio strategy.

Europa Oil & Gas is an oil and gas E&P company with assets in Europe and West Africa.

• Equatorial Guinea’s government is supportive of oil and gas development, and the country offers a stable fiscal and operating environment for international E&P companies.
• Block EG-08 and the surrounding acreage have fast-track potential thanks to the Chevron-operated Alen offshore platform and a nearby pipeline connected to the EG LNG terminal.
• The geology of Equatorial Guinea is well understood, and prospects in the area have registered drilling success rates as high as 90%.

After operating in the UK, Ireland and Morocco, Europa Oil & Gas now holds block EG-08 in Equatorial Guinea. What drew you to the country?
Africa aligns well with our experience and network. Our team has extensive upstream expertise across the continent, and that has allowed us to identify opportunities where we can add value.
The geology of Equatorial Guinea is well understood, and the Barracuda prospect in block EG-08 offers a strong seismic signature. With analogues in the region showing a 90% drilling success rate, we conservatively assign an 80% probability of success. Operationally, the country is served by major contractors such as SLB and Halliburton, and conditions are favourable, as our asset is in shallow water, with straightforward drilling conditions and limited technical risk.
Equally important, Equatorial Guinea offers a stable political, fiscal and operating environment, with strong government support for oil and gas development. The regulatory framework is well defined, and the government avoids frequent changes, providing confidence for long-term investment. From a risk-reward perspective, the economics are compelling. A USD 50-million well could unlock a project with an estimated NPV [net present value] of around USD 2 billion.

What is the current status of your operations in EG-08?
We have successfully farmed down the asset, securing approximately USD 53 million in funding. We have retained operatorship with Fuhai Energy as our partner. They generate approximately USD 15.5 billion in annual revenue and process around 200,000 bpd, with plans to increase that capacity significantly. While it is primarily a refining business, it also has a dedicated upstream team to grow in alignment with broader goals under China’s Belt and Road Initiative.
At the moment, we are securing ministerial consent and outbound investment approval by the Chinese authorities. We expect to have both soon. In the meantime, we are preparing for drilling. We are building the team and establishing a local presence, and we are in the market for a rig. With approvals and funding in place, we should be ready to drill in late 2026 or early 2027.

Does block EG-08 offer any infrastructure advantages?
The block is located just 9 kilometres from the Chevron-operated Alen platform, which has significant spare capacity. A nearby pipeline capable of transporting 26.9 mcm (950 mcf) per day runs directly over the prospect and connects to the EG LNG terminal, which itself has capacity and expansion potential.
This means that, in the event of a discovery, we could either develop the field as a standalone project or tie it back quickly to existing infrastructure. It has the potential to become one of the fastest developments in the region.

Are there any subsurface or operational challenges to highlight?
The block’s shallow water, predictable geology and high-quality reservoir characteristics indicate that drilling will be relatively straightforward. The formation consists largely of mudstone with a high-quality turbidite reservoir, and there are no significant weather or technical constraints. There is a minor risk of encountering shallow gas, but it can be mitigated through site surveys and careful well positioning.

Beyond EG-08, what types of assets fit Europa’s expansion strategy?
We aim to build on our presence in Equatorial Guinea while exploring broader opportunities across the Gulf of Guinea and the African continent wherever we have an advantage. As a small company, we must be selective and creative in structuring deals. Our focus is on assets where we can add value without overstretching financially, and we are evaluating several opportunities that align with our interests.
We seek to operate our assets wherever possible, as our team has strong technical expertise that we wish to fully leverage. However, we remain flexible. In some cases, partnerships or non-operated roles alongside trusted companies may make sense.

Where do you see Europa Oil & Gas in five years?
Our portfolio is becoming increasingly focused on gas. The overall emissions generated by domestic gas production can be up to 50 times lower than those of LNG imports. We believe there is a strong environmental and economic case for extracting gas for domestic consumption, particularly in the UK, where we are developing a gas project in Cloughton close to existing infrastructure.
We aim to become a materially larger company. A discovery in Equatorial Guinea, followed by rapid development and the acquisition of additional licences across West Africa, would significantly strengthen our portfolio. Our goal is to build a diversified, high-impact upstream business with strong growth potential.

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