Mandatory Local Partnership Requirement in Equatorial Guinea’s Oil & Gas Sector: What Foreign Investors Must Know
Equatorial Guinea remains one of the most attractive jurisdictions in Africa for investments in the oil and gas sector. However, to successfully establish a presence in the country, foreign companies must comply with a number of local regulatory requirements.
One of the most important obligations for foreign investors in the hydrocarbons sector is established in Decree No. 72/2018 of April 18, which modifies Decree No. 127/2004. This regulation specifically mandates:
“In the Oil Sector, the participation of Equatoguinean partners in companies created by foreigners in Equatorial Guinea, or in foreign companies operating in the country, must not be less than 35% of the share capital. There must be at least three national partners, and nationals must hold a minimum of one-third of the seats on the Board of Directors.”
This requirement forms part of the Government’s strategy to promote national participation and local content in the country’s vital energy industry.
At Jones & Sacristán, Law Firm, we assist foreign companies to:
- Navigate local incorporation and compliance requirements;
- Identify and structure partnerships with credible local partners;
- Ensure all company statutes and governance structures comply with the decree;
- Draft and review shareholder agreements;
- Maintain strong relations with regulatory authorities.
If your company does not yet have a local partner, or you are unsure how to comply with this regulation, we strongly encourage you to consult with us before starting operations. Non-compliance may lead to delays in licensing, fines, or even revocation of operating permits.
Our team of bilingual business lawyers—licensed in Equatorial Guinea and experienced in oil and gas law—stands ready to support your expansion into the market.
📍Contact us today at[info@jonesandsacristan.es](mailto:info@jonesandsacristan.es)
🌍 Visit our website: [www.jonesandsacristan.es](https://www.jonesandsacristan.es)
info@jonesandsacristan.es
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2025-07-14
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