Chinese investor backs $53m major West African gas prospect

UK-listed Europa Oil & Gas has moved closer to drilling a large shallow-water gas prospect off Equatorial Guinea after sealing a farm-in agreement with a Chinese investor, strengthening momentum behind one of its most promising African assets.

• UK-listed Europa Oil & Gas has secured a Chinese partner for its high-impact EG-08 gas block offshore Equatorial Guinea.
• Fuhai (Beijing) Energy will take a 40 per cent stake and fund up to 95 per cent of the $53 million cost of an exploration well.
• The Barracuda prospect is located near Chevron’s producing fields and is scheduled for drilling in 2026.
• The deal reduces Europa’s financial risk while accelerating development in one of West Africa’s proven gas hubs.

The company announced that Fuhai (Beijing) Energy, a wholly owned subsidiary of privately held Fuhai Group New Energy Holding, will acquire a 40 per cent interest in the EG-08 production sharing contract offshore Equatorial Guinea.

The deal significantly reduces Europa’s financial exposure while accelerating plans to drill the Barracuda prospect in the second half of 2026.

Europa has described the EG-08 block as a high-quality, low-risk, infrastructure-led opportunity located in a proven gas province. The acreage sits immediately north of Chevron’s producing Alen and Aseng fields, as well as several other discoveries in blocks O and I, underlining the commercial potential of the area.

The Barracuda prospect is estimated to hold nearly 900 billion cubic feet of gas before drilling and carries an unusually high 80 per cent chance of success.

Under the terms of the agreement, Fuhai will fund 95 per cent of the cost of the Barracuda exploration well, capped at $53 million, a structure that sharply limits Europa’s near-term capital requirements. Should a commercial discovery be made, Fuhai will have a preferential right to recover its carried costs.

Following completion, Antler Global, Europa’s associated company, will retain a 40 per cent operating interest in the licence. Fuhai will also hold 40 per cent, while the remaining 20 per cent will stay with Equatorial Guinea’s national oil company, GEPetrol.

William Holland, chief executive of Europa Oil & Gas, said the transaction marked a major milestone for the company and aligned all partners behind a fast-tracked development strategy.

He noted that the agreement was “the culmination of three years of hard work” to identify the opportunity, mature the prospect, and secure a partner capable of carrying the project through drilling.

Europa said it has now entered a phase of detailed engineering and procurement as it works towards spudding the Barracuda well as soon as regulatory approvals are secured.

The company expects 2026 to be a defining year, with progress on EG-08 potentially reshaping its portfolio and adding to West Africa’s growing role in global gas supply.