China's Fuhai to fund Equatorial Guinea Barracuda well, Europa says

China’s Fuhai to fund Equatorial Guinea well, Europa says

MALABO, December 30, 2025 – China’s Fuhai Group will fund the bulk of drilling at the Barracuda gas prospect offshore Equatorial Guinea under a farm-out deal with Europa Oil & Gas’s associate company, the UK firm said on Tuesday.

Under the binding agreement, Fuhai will acquire a 40% working interest in the EG-08 PSC in return for covering 95% of the Barracuda well costs, capped at USD 53 million. Antler Global, which retains operatorship, will fund the remaining 5%. The Barracuda prospect is estimated at 25.3 bcm (893 bcf).

Any cost overruns above the cap will be split equally. Once commercial production begins, Fuhai will have preferential recovery rights on its investment, with a portion accruing interest at up to 5% per year.

“The farm-in is without question a great result for Europa and equates to a 2.38 for 1 carry which reflects the quality of the asset,” Europa CEO William Holland said. “2026 is going to be a pivotal year for Europa and I look forward to updating the market as we secure the necessary approvals.”

The transaction is subject to approval from Equatorial Guinea’s Ministry for Mining and Hydrocarbons and from the Shandong provincial government in China.

Europa holds a 42.9% interest in Antler, which now holds 40% of the EG-08 PSC. The remaining shares are split between Fuhai (40%) and national oil company GEPetrol (20%).

Following the deal, Antler plans to drill the Barracuda well in 2026 and has entered a phase of engineering and procurement.

Fuhai Group New Energy Holding is one of China’s largest private petrochemicals and energy firms. Its operations include 10 million tonnes per year of crude processing, production at the Kenli Block in Bohai Bay, and a downstream portfolio spanning 800 petrol stations and large-scale PX and PTA output. The group reported 2024 revenues of USD 12.7 billion.

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