Equatorial Guinea has signed a landmark Heads of Agreement (HoA) with U.S. oil and gas company, ConocoPhillips, state gas company SONAGAS, and the Ministry of Hydrocarbons for the development of the B/4 and EG-27 offshore gas blocks. The deal, valued at an estimated US$9 billion, sets the stage for one of the largest investments in the country’s energy sector in recent years. This deal also comes as the country plans to open a new oil and gas licensing round in April 2026, as announced by the Minister for Mines and Hydrocarbons, Antonio Oburu Ondo, at the African Energy Week in South Africa.
Project Factsheet
Parties: ConocoPhillips, SONAGAS, Equatorial Guinea’s Ministry of Hydrocarbons and Mining Development
Project Type: Offshore natural gas development
Location: Offshore Equatorial Guinea, linked to Punta Europa gas complex in Bioko Island
Estimated Investment Value: US$9 billion
Status: HoA signed
Next Steps: Production Sharing Contracts (PSCs), FEED studies, FID
Scope of the Agreement
The HoA establishes a framework for exploration, development, and eventual monetization of offshore natural gas reserves in the B/4 and EG-27 blocks. According to Minister Antonio Ondo, Block EG-27 has about 2.8 trillion cubic feet (tcf) of gas while Block B/4 has about 0.7tcf.
ConocoPhillips, with a long record of global LNG and offshore expertise, will work alongside SONAGAS to bring international financing and advanced technical capacity to the project. The Ministry of Hydrocarbons will provide regulatory oversight and alignment with the government’s long-term energy vision.
Additionally, another critical part of the plan is integration with the Punta Europa gas complex on Bioko Island. This is Equatorial Guinea’s hub for LNG production and gas processing.
Officials note that additional feed gas from ConocoPhillips-operated blocks could sustain and expand LNG output from Punta Europa for more than 20 years. The American oil and gas company also made its first LNG shipment from the facility’s LNG plant (EG LNG facility) in June 2025. This is after it acquired Marathon Oil in 2024 – hence acquiring its stake in the project.
Industrial Impact of the ConocoPhillips-Equatorial Guinea Offshore Gas Deal
SONAGAS described the agreement as a “strategic milestone” for the country, signaling renewed confidence from international partners. The Ministry also emphasized that this aligns with Equatorial Guinea’s strategy to extend the life of its LNG industry, diversify its portfolio, and strengthen its position as a regional gas hub.
ConocoPhillips, in turn, highlighted the strategic nature of the resource base and its potential to support both regional energy needs and global LNG markets.
Regional Impact of the ConocoPhillips-Equatorial Guinea Offshore Gas Deal
Equatorial Guinea has been repositioning itself as a regional energy player in West Africa, a zone rich in offshore gas reserves.
The West African state also has existing partnerships with companies such as Chevron, Marathon Oil, and ExxonMobil, and this agreement with U.S. oil and gas major, ConocoPhillips aligns with its goal to expand collaboration to secure new supply chains.
ConocoPhillips-Equatorial Guinea offshore gas deal also adds to a trend of growing LNG infrastructure across the Gulf of Guinea, with countries like Senegal and Mauritania also moving ahead with offshore gas projects.
