Equatorial Guinea seeks to expand TotalEnergies partnership as oil production declines

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President Teodoro Obiang is pushing for a broader energy relationship, but the meeting ended without the announcement of new investments, contracts or projects

JOHANNESBURG – Equatorial Guinea is seeking to deepen and diversify its partnership with TotalEnergies as declining oil production puts pressure on government revenue and increases the need for fresh investment in the country’s energy sector.

President Teodoro Obiang Nguema Mbasogo outlined that ambition during a September 9 meeting with a senior TotalEnergies executive responsible for the company’s African operations. The official government statement did not identify the executive by name.

Obiang called for permanent coordination and a “shared strategic vision” between his government and the French energy group. The meeting, also attended by Minister of State for Mines and Hydrocarbons Antonio Oburu Ondo, examined opportunities to extend cooperation into new areas of mutual interest.

No contracts, investment commitments or implementation timetables were announced after the talks. TotalEnergies has also yet to disclose any public commitment to expand its operations in the Central African country.

Still, the discussions carry economic significance. Malabo is seeking to preserve its relationships with major international companies at a time when ageing oilfields, operational disruptions and the withdrawal of some foreign investors are placing mounting pressure on the government’s main source of revenue.

TotalEnergies has operated in Equatorial Guinea since 1984. The company employs more than 150 people, runs about 30 service stations and operates two petroleum-product storage facilities. It also supplies fuels and lubricants to commercial customers.

Its presence is primarily concentrated in fuel storage, distribution and retail rather than large-scale crude production. A broader partnership could therefore allow the government to attract capital and technical expertise into other parts of the energy value chain.

Although the official statement did not identify the sectors under consideration, potential areas of cooperation could include storage, logistics, natural gas, electricity generation, renewable energy and workforce training. Any expansion would, however, depend on commercial negotiations, regulatory conditions and formal investment commitments.

The urgency reflects Equatorial Guinea’s heavy reliance on hydrocarbons. Oil and gas continue to dominate exports and account for a substantial share of government revenue, leaving the economy vulnerable to fluctuations in global energy prices and the structural decline of domestic production.

The World Bank has warned that falling hydrocarbon output could keep the economy under pressure between 2025 and 2027. The International Monetary Fund has similarly identified ageing fields and limited economic diversification as major constraints on medium-term growth.

ExxonMobil’s departure after nearly three decades in the country highlighted those vulnerabilities. Output linked to the Zafiro field fell from about 45,000 barrels a day to roughly 15,000 after a floating production unit affected by operational problems was withdrawn in 2022. The assets were subsequently transferred to state-owned oil company GEPetrol.

Zafiro is not connected to TotalEnergies’ operations, but its decline helps explain why the government is seeking to retain and potentially expand its relationships with international energy companies. Malabo needs investment, technology, employment and revenue. For TotalEnergies, any expansion would depend on project profitability, regulatory stability and the quality of the opportunities offered.

The central challenge will be turning diplomatic engagement into measurable economic results. A partnership capable of delivering a broader impact would require clearly defined projects, investment figures, implementation deadlines, local-employment targets and mechanisms for transferring skills and technology.

The meeting strengthened dialogue between the government and the French multinational. Its real significance, however, will depend on whether those expressions of intent translate into investment decisions that improve energy security and produce tangible benefits for Equatorial Guinea’s population.