Equatorial Guinea: Oil production drops in September to 103,000 barrels

Daily oil production in Equatorial Guinea fell in September to 103,000 barrels, a drop of 15,000 barrels a day, according to data released by the Organisation of Petroleum Exporting Countries (OPEC).

OPEC’s latest monthly report, published on Tuesday and based on secondary sources from the organisation, shows that oil production in Equatorial Guinea fell in September after high results in August.

In July, the OPEC count was 114,000 barrels a day, and this production would increase in the following month, to about 118,000 barrels per day.

With this drop in production and with the recovery of Libya, which in September produced 156,000 barrels a day (53,000 more than in August), Equatorial Guinea is again the OPEC member with the lowest oil production.

Among the smallest OPEC producers are also Gabon (180,000 barrels per day), the Republic of Congo (283,000 barrels) and Venezuela (383,000 barrels).

The OPEC report includes data from direct communications by Equatorial Guinea, which also points to a decrease in the order of 6,000 barrels of daily oil production, to about 112,000 barrels in September compared with nearly 117,000 in July.

In the last 20 years, the exploitation of oil resources has been the main pillar for the growth of this economy.

To avoid a high dependence on oil exploration, the African Development Bank (AfDB) committed last September to support economic diversification in the country through a program that will focus, among others, on agricultural transformation.

According to AfDB data, the fall in oil prices affected public investments, which in 2017 represented 17.2% of Equatorial Guinea’s Gross Domestic Product (GDP), down from 24.6% in 2013.

Due to the consequences of the Covid-19 pandemic, with the impact on the economy and the decrease in consumption, the OPEC Joint Technical Committee has been recommending cuts in oil production.

In Tuesday’s paper, OPEC maintained the forecasts for world oil consumption in 2020 and 2021 due to uncertainty about the effect of a second wave of the pandemic on the global economy.

According to OPEC, oil consumption will fall this year by 9.5 million barrels per day compared to 2019, maintaining the forecast of a daily demand of 90.3 million barrels for this year and 96.8 million barrels per day for 2021.

The pandemic has hit oil demand due to the global economic slowdown, with restrictions on circulation, teleworking and reduced travel causing a drop in energy consumption.