Equatorial Guinea Petroleum

MIGA issued its first guarantee contract in Equatorial Guinea, for the exploration, development, and production of oil and gas. MIGA's $24 million guarantee covers UMC Equatorial Guinea Corporation of the United States for its $272 million equity investment in the project. MIGA's guarantee covers the risks of expropriation and war and civil disturbance.

The project involves the production of natural gas and crude oil from a concession area off the coast of Bioko Island in the Gulf of Guinea. The 80,000 barrels of oil produced from subsea wells will connect to a floating production, storage, and offloading system.

The project is one of the country's largest foreign investments and will have a profound impact on the economy. Its foreign currency earnings will generate significant additional revenues for the government. The project will also benefit the local economy by providing employment and technical training for local nationals.