Equatorial Guinea passes flexible hydrocarbon law to reverse sharp oil decline

Equatorial Guinea will approve a new hydrocarbon law on October 19, 2026, to offer favorable terms to oil explorers and attract new investment. Rigzone News and Oilprice both reported that the government plans to pass the legislation to stop a severe decline in its crude oil output. [1][2]

According to Oilprice, crude production in Equatorial Guinea collapsed to 20,000 barrels per day in September 2026, down from roughly 140,000 barrels per day in 2020. Rigzone News similarly reported that output for the smallest member of OPEC has dropped by more than 85 percent since 2020. [1][2]

Antonio Oburu Ondo, the Minister of Hydrocarbons and Mineral Development for Equatorial Guinea, told Rigzone News that the new law brings competitiveness and flexibility to contractual terms. He stated that the government does not have a specific production target, but aims to ensure that companies begin drilling campaigns. [1]

Oilprice reported that the loss of 120,000 barrels per day in production has reduced output for OPEC's smallest producer to a fraction of its former levels and impacted its domestic economy. [2]