Prepayment deals, traditionally used in commodity markets, are now playing a strategic role in sustaining African hydrocarbon production. Traders provide upfront capital that is repaid through future deliveries, effectively acting as both financiers and market participants. Similar structures have supported projects elsewhere: Gabon partnered with Gunvor Group to acquire Tullow Oil and Assala Energy assets, while Nigeria arranged a $3.3 billion facility through a consortium of traders. For Equatorial Guinea, these agreements provide immediate liquidity, maintain operational control and ensure that production continues even as banks remain cautious about fossil fuel exposure.

The current $300 million initiative builds on earlier talks with Trafigura over a potential $2 billion support package, signaling a focused effort on sustaining existing fields. The urgency is clear: Equatorial Guinea’s oil production fell to roughly 44,000 barrels per day in November, about a third of levels four years earlier, due to aging fields and the exit of long-term investors. ExxonMobil, which had operated in the country for nearly three decades, exited in 2024, leaving state-owned GEPetrol to manage key assets. Despite these setbacks, LNG exports continue through partnerships with ConocoPhillips and a local Chevron unit, keeping the country relevant in regional gas markets.

Equatorial Guinea’s approach illustrates a broader story for African energy: the rise of innovative financing structures that keep production flowing even amid global uncertainty. As major investors and banks reassess exposure to oil and gas, trading houses are stepping in, offering both capital and market expertise to fund projects that might otherwise stall. These arrangements provide flexibility, allowing governments to maintain production, invest in infrastructure and meet fiscal obligations, while giving traders multi-year, structured access to resources that mitigate commercial risk.

These trends are expected to feature prominently at the upcoming Invest in African Energy 2026 Forum (IAE) in Paris, where governments, traders, financiers and operators will explore practical solutions to capital constraints and risk management. For Equatorial Guinea, prepayment agreements could offer a more resilient path forward, align alternative sources of capital with long-term production goals and safeguard fiscal stability. IAE 2026, scheduled for April 22–23, provides an exclusive platform to examine these developments, connect African markets with global investors and explore the innovative financing models shaping the continent’s energy future.

IAE 2026 is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.invest-africa-energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.com