Press Release : EQUATORIAL GUINEA

Equatorial Guinea Strengthens Protection for Foreign Oil and Gas Investors with Decree No. 100/2024

In a move aimed at bolstering investor confidence and increasing foreign investment in its hydrocarbon sector, the Government of Equatorial Guinea has passed Decree No. 100/2024. The decree introduces key regulations for the enforcement of judicial rulings against oil companies operating within the country, emphasizing the protection of foreign investments in line with Equatorial Guinea’s broader economic goals.

The decree, which supplements the OHADA Uniform Act on Enforcement, aims to ensure procedural consistency and fairness in the execution of judgments related to oil and gas companies. It reflects the government’s commitment to safeguarding national interests while maintaining an attractive environment for international investors.

Legal and Economic Implications

Decree No. 100/2024 focuses on improving legal certainty within the petroleum sector, a vital component of Equatorial Guinea’s economy. The hydrocarbon sector is the nation’s largest revenue generator, and the government recognizes the need to provide stability and predictability in its legal framework to attract and retain foreign investors.

Foreign oil and gas companies operating in Equatorial Guinea voiced concerns about arbitrary and questionable judicial decisions that resulted in wrongful enforcement proceedings against their assets. These decisions were often seen as creating legal insecurity and fostering a one-sided judiciary, where the enforcement of judgments seemed inconsistent and unfair. As a result, companies reported increasing legal risks, undermining their confidence in the country’s legal system.

Through this new decree, the government has established a special procedure for enforcing judgments against oil companies, with a particular focus on minimizing any potential economic disruptions that could arise from aggressive enforcement actions. This will help balance judicial actions with the country’s economic stability, ensuring that investor interests remain protected.

Key Provisions of the Decree

The decree introduces several provisions to regulate the enforcement of judgments against oil companies, including:

• Mandatory procedural steps to be followed before the execution of any judgment.
• Government oversight and approval requirements to ensure that enforcement actions are in line with the country’s economic policies.
• Defined timeframes and deadlines to guarantee the timely execution of judgments.
• Sanctions for non-compliance to ensure adherence to the decree’s provisions.

These measures reflect the government’s intent to maintain a fair and controlled environment for the enforcement of judicial decisions, safeguarding the interests of both the state and foreign investors.

Focus on Transparency and Due Process

The implementation of Decree No. 100/2024 is designed to ensure transparency and due process throughout the enforcement process. According to the decree, the court that heard the case must forward the execution file to the Supreme Court, the Presidency of the Government, and key institutions such as the Ministry of Hydrocarbons and the General Prosecutor’s Office. These institutions will play a crucial role in reviewing the case and ensuring that all legal requirements are met.

The General Prosecutor’s Office, in particular, will be responsible for assessing the integrity of the judicial process and ensuring that procedural rules are followed. Any irregularities or violations will be reported to the government for further action.

Impact on Foreign Investors

The introduction of this decree is expected to have a significant impact on foreign oil and gas investors. With enhanced protection from arbitrary judicial actions, foreign companies will benefit from a more predictable and transparent legal environment. This, in turn, is expected to foster greater confidence in the country’s energy market and attract additional foreign investment.

In addition, the decree aligns with Equatorial Guinea’s broader strategy to create a favourable business climate that is both legally sound and economically viable. By ensuring that judicial enforcement of judgments is balanced with the protection of national economic interests, the government is taking steps to position the country as a leading investment destination in the African energy sector.

Government Oversight and Final Decisions

Under the new decree, the Presidency of the Republic will have the final say on the execution of judicial rulings. Once the case file is reviewed by the relevant authorities, it will be forwarded to the President for a final decision via an administrative decree. This oversight ensures that any enforcement actions align with the broader strategic goals of the government, particularly the protection of foreign investments.

Looking Ahead

Decree No. 100/2024 represents a significant step forward in Equatorial Guinea’s efforts to strengthen its legal framework for the oil and gas sector. By introducing clear and structured procedures for enforcing judicial rulings, the government has taken a decisive step toward enhancing the protection of foreign investors and fostering a stable business environment.

Foreign investors operating in the country, particularly those in the oil and gas sector, are encouraged to familiarize themselves with the new regulations to ensure full compliance and avoid potential legal disputes.

As Equatorial Guinea continues to position itself as a key player in Africa’s energy market, the enactment of Decree No. 100/2024 underscores the government’s commitment to maintaining a secure, transparent, and investor-friendly environment.

For more information on Decree No. 100/2024 or for legal advice regarding the enforcement of judicial rulings in Equatorial Guinea, please contact Clarence Abogados & Asociados at info@clarenceabogados.com

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Clarence Abogados & Asociados
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