China’s Fuhai Energy has taken a stake in the Barracuda gas project offshore Equatorial Guinea through a farm-out agreement on the EG-08 block, according to partner Europa Oil & Gas. The move brings Fuhai into the licence alongside operator Antler Global, which continues to lead the project.
Deal Structure, Partners and Funding
Under the agreement, Fuhai acquires a 40% interest in the EG-08 production sharing contract (PSC). Financial terms were not disclosed. However, Fuhai will fund up to 95% of the first exploration well, with its share capped at $53 million. Antler retains a 40% interest and will cover the remaining 5% of drilling costs.
Equatorial Guinea’s state oil company, GEPetrol, holds a carried 20% interest in the licence. Europa Oil & Gas owns a 42.9% stake in Antler Global. If drilling confirms a commercial discovery, PSC terms give Fuhai priority in recovering its costs.
Block Location, Resources and Infrastructure
The EG-08 block spans about 731 square kilometres in the Douala Basin offshore Equatorial Guinea. Water depths average around 80 metres. Barracuda is the most advanced prospect within the licence. Analysis of 3D seismic data has already identified several gas-bearing structures.
Developers estimate total prospective resources at just over 2 trillion cubic feet of gas equivalent. Around 893 billion cubic feet is attributed to the Barracuda prospect, pending confirmation through drilling. Nearby offshore infrastructure operated by Chevron could lower development and tie-in costs if a discovery proceeds.
Licensing Round and Production Context
The deal comes as Equatorial Guinea prepares to launch a new oil and gas licensing round from April to November 2026. Authorities plan to offer 24 blocks. The government aims to attract fresh investment as national output continues to decline.
According to OPEC, crude oil production fell to about 55,000 barrels per day in 2023. Output stood at 241,000 bpd in 2010 before natural decline set in across several mature fields.
Read more about African oil and gas HERE
