Equatorial Guinea’s Natural Resources: Locations, Discoveries, Viability, Export Potential, And Economic Impact

Equatorial Guinea, the third-largest oil producer in Sub-Saharan Africa, is rich in natural resources that have driven its economic growth.

It has around 1.3 trillion cubic feet of proven natural gas reserves, mainly offshore near the Bioko Island, Zafiro, and Alba fields.

The country also has 62% forest cover, with timber production concentrated in Río Muni. Other untapped resources include gold, titanium, manganese, and iron ore.

The discovery of oil in 1996 led to rapid GDP growth, reaching 280,000 barrels per day in 2004. However, dependence on oil exports has left the economy vulnerable to price fluctuations, as seen in the 2014 oil price collapse. Despite a high per capita income, two-thirds of the population lives in poverty.

Equatorial Guinea’s Natural Resources And Their Locations

Here are the natural resources that have been discovered in Equatorial Guinea and their locations:

Natural Resources	Locations
Petroleum	Offshore near Bioko Island (Zafiro, Alba, and Ceiba fields)
Natural Gas	Offshore near Bioko Island (Zafiro, Alba fields, Fortuna field in Block EG-27)
Timber	Río Muni region
Gold	Río Muni mainland region (Coro, Aconibe, Mongomo)
Bauxite	Río Muni mainland region
Diamonds	Nsork area in the southeastern Río Muni mainland region
Niobium-Tantalum	Aconibe and Ayamiken in Río Muni mainland region
Tin and Tungsten	Río Muni mainland region

The Discoveries Of Equatorial Guinea’s Natural Resources

The discovery of oil and gas reserves almost overnight transformed Equatorial Guinea’s economy, making it the third-largest producer in Sub-Saharan Africa.

Oil exports drove GDP growth and government revenue. Before the 1990s, the country relied on agricultural exports, with cocoa and coffee being key staples in its economy.

In 1995, notable offshore petroleum reserves were discovered. The following year, Mobil Oil revealed large oil and gas reserves in the Zafiro and Alba fields.

By the 2000s, the country reached peak oil production, reaching 280,000 barrels per day in 2004. This period saw rapid economic growth, with oil exports being the backbone of the economy.

As the oil industry matured, the focus shifted towards other valuable resources. Deposits of gold, bauxite, and diamonds were found in the Río Muni mainland region, opening up new opportunities to reduce the nation’s reliance on oil.

Viability Of Resource Extraction In Equatorial Guinea

Equatorial Guinea’s oil and gas reserves are located offshore near Bioko Island, with notable fields like Zafiro, Alba, and La Ceiba.

Historically, these reserves have accounted for nearly 50% of the GDP and over 70% of government revenue. However, the sector now faces serious challenges.

Oil production, which peaked in 2004 at 280,000 barrels per day, has sharply declined due to aging fields like Zafiro and Alba.

Natural gas production has also declined. Many production facilities, such as the Zafiro platform, which was retired in 2022 due to water leakage, are outdated.

Río Muni has significant mineral deposits, including gold, bauxite, and diamonds, but extraction is limited. Technological barriers and the high costs of exploration in deep-water areas are deterrents to large-scale development.

There are also uncertainties about the commercial value of unexplored areas. Once a major exporter of cocoa and coffee, agriculture now plays a little part in the economy. Timber has become a key resource, but unsustainable logging threatens forest resources.

Export Potential Of Equatorial Guinea’s Natural Resources

Oil is the dominant export, representing almost the entirety of the nation’s export goods. Over recent years, oil production has declined sharply, from 275,137 barrels per day in 2005 to 54,086 barrels per day in 2023.

However, oil still drives key trade relationships with major partners like the United States, China, and Portugal. Despite the drop in oil production, the country is exploring new export avenues to reduce its reliance on crude oil.

Investments in Liquefied Natural Gas (LNG) production are aimed at tapping into the rising global demand for cleaner energy. LNG exports could attract foreign investment and help stabilize the country’s export revenues.

Additionally, the growth of methanol exports, driven by the demand for alternative fuels and chemical feedstocks, presents another opportunity for diversification.

Timber and agricultural products like cocoa and coffee offer further potential. Africa, Asia, and Latin America all have growing markets for these emerging sectors.

Economic Impact Of Equatorial Guinea’s Natural Resources

Equatorial Guinea’s economy depends on its natural resources, particularly oil, natural gas, timber, and minerals. These resources drive the country’s GDP growth, infrastructure expansion, and government revenue.

1. Contribution To GDP

Oil and natural gas dominate the economy, making up over 80% of Equatorial Guinea’s GDP. In 2022, the nation’s GDP was approximately $10.7 billion. This reliance on hydrocarbons exposes the economy to vulnerabilities with fluctuations in global oil prices.

GDP Composition:

Oil and Gas: 80%
Other Sectors: 20%

2. Infrastructure Development

Revenue from natural resources has funded infrastructure projects throughout the country. Notable developments include deepwater ports like those in Malabo and Bata, which facilitate oil and gas exports, and improvements to roads and bridges that improve connectivity between key urban centers.

3. Government Revenue

In 2022, government revenue from oil and gas exports was estimated at $3.62 billion. This income helps fund public spending on infrastructure and social services.

However, issues such as corruption and mismanagement have curbed the use of these funds in addressing poverty and diversifying the economy.