Equatorial Guinea Farm-Out Deal Progresses, Awaiting Chinese Approval

A farm-out agreement involving a Chinese company for an exploration licence offshore Equatorial Guinea has moved forward, though finalization hinges on Chinese governmental approval. The deal, which was struck at the end of 2025, involves Antler Global—a company in which London-listed Europa Oil & Gas holds a 42.9% stake—selling half of its 80% interest in the EG-08 licence to Fuhai Energy.

On Friday, Europa announced that Equatorial Guinea's Ministry of Mining & Hydrocarbons Development has approved the farm-out. However, the transaction remains subject to Overseas Direct Investment (ODI) approval from the Shandong Provincial government in China. If the agreement completes, the Barracuda-1 exploration well could be spudded in early 2027, later than the original plan of the second half of 2026. The Barracuda prospect has pre-drill potential of nearly 900 billion cubic feet of gas.

Europa CEO William Holland stated that alongside Fuhai, the team has been working to assemble the drilling team to spud the well at the earliest opportunity, and that securing a rig will be possible once ODI approval is received. As part of the deal, Fuhai will fund 95% of the costs of the Barracuda well, up to a cap of $53 million. Fuhai is a wholly-owned subsidiary of the privately-owned Fuhai Group New Energy Holding.