Equatorial Guinea Clears Europa Oil's Block Farm-Out to Chinese Firm

Europa Oil & Gas (Holdings) PLC said it is moving closer to drilling the Barracuda prospect offshore Equatorial Guinea after the Central African country approved the entry of a new Chinese partner in the relevant license.

Antler Global Ltd, in which Europa owns 42.9 percent, received clearance from the Mining and Hydrocarbons Ministry to sell 40 percent in the offshore EG-08 production sharing contract to Fuhai (Beijing) Energy Ltd.

"The deal remains subject to Overseas Direct Investment (ODI) approval from the Shandong Provincial government", London-based Europa said in a press release.

Antler would retain a 40 percent operating stake. State-owned Guinea Equatorial de Petróleos owns 20 percent.

"Alongside our partners at Fuhai, we have been working hard to assemble the drilling team needed to spud the Barracuda-1 well at the earliest opportunity. Once we have received ODI approval, we will then be able to secure a rig", said Europa chief executive William Holland.

Europa said it expects to launch drilling "early 2027".

EG-08 holds about 2.2 trillion cubic feet of prospective resources, with Barracuda as the primary target. The well is estimated to hold 893 billion cubic feet of prospective resources with an 80 percent chance of success, according to Europa.

Under the agreement Fuhai would fund 95 percent of the cost of the Barracuda well, up to a cap of $53 million, with Antler shouldering the remainder. Cost overruns above the $53 million cap are to be shared equally.

"Upon commercial hydrocarbon sales Fuhai will have a preferential recovery right to recover the Fuhai carry", Europa said December 30, 2025. "Forty-five percent of the Fuhai carry will accrue interest, capped at five percent per annum, which will accrue from funding until full recovery from asset cashflows. Interest will be canceled if the Barracuda prospect does not result in a commercial discovery".

Earlier in 2026 Europa raised GBP 4.1 million ($5.5 million) to fund drilling for Barracuda and activities in other licenses.

As of yearend 2025 Europa had negative working capital. Current liabilities stood at GBP 1.08 million while current assets totaled GBP 957,000, according to the company's latest results report, published last Wednesday.

"We believe a successful result at Barracuda would be genuinely transformational for the Company", Europa said in the results statement.

EG-08 spans 731 square kilometers (282.24 square miles) in the Douala Basin and sits next to Chevron Corp's Alen and Anseng fields, according to Europa.

On February 12, 2026 Europa said Equatorial Guinea had finalized a one-year extension to EG-08's initial two-year term.

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