LOCAL CONTENT REGULATIONS FOR THE PETROLEUM INDUSTRY

摘要

On September 26, the Minister of Mines, Industry and Energy of Equatorial Guinea, which oversees the oil and gas sector, approved the first regulations adopted in the country on local content issues (LCR) applicable, almost exclusively, to the petroleum industry. Until recently, the only piece of legislation issued in Equatorial Guinea solely dedicated to local content issues was Decree No. 127/2004, of September 14, 2004, which is still in force today. It essentially dictates that companies with operations in the country must be held by three Equatoguinean partners, holding equity interests representing no less than 35 per cent of their share capital and the right to appoint one-third of their board members, who must be entrusted with effective management powers. The State oil company, GEPetrol, holds a right of first refusal to be one of the national partners regarding companies in the oil sector (and the only national partner if its shares in the company exceed 35 per cent of the share capital).