Dutch SBM Offshore divests entire stake to Equatorial Guinean state oil firm

SBM Offshore, a Netherlands-based offshore company, has signed an agreement to divest its entire equity interest in the lease and operating entities of the floating production, storage, and offloading facility FPSO Aseng, in Equatorial Guinea.

The company will be divesting to Equatorial Guinea’s state-owned company, GEPetrol. SBM Offshore and GEPetrol formed Aseng Production Company to own and operate the FPSO Aseng.

According to a statement, the company’s exit from Equatorial Guinea will take place following an operational transition phase lasting up to 12 months.

SBM Offshore said the divestment is in line with its strategy to rationalise its lease & operate portfolio, as per other recent transactions.“The agreement remains subject to several conditions precedent and approvals,” the statement said.

Once the divestment is approved, GEPetrol will be the sole owner and operator of the FPSO Aseng.

FPSO Aseng started first oil production in November 2011 on the Aseng field located in approximately 1,000 meters of water in Block I, offshore Equatorial Guinea. The FPSO has a processing capacity for 120,000 barrels of liquids per day, including 80,000 barrels of oil and injection capacity of up to 150,000 barrels per day of water, as well as handling 170 million standard cubic feet per day of gas.

In 2024, SBM Offshore also divested its FPSO asset to ExxonMobil, enabling possession of the third unit working off the coast of Guyana.

Beyond portfolio rationalisation

Katlong Alex, an energy sustainability analyst at the African Energy Council, told Gas Outlook that this move reflects a wider trend among Western energy companies, many of which are recalibrating their African portfolios.

He said factors such as the operational complexity of aging infrastructure like FPSO Aseng, geopolitical and regulatory uncertainties, and increasing pressure to decarbonize, have made certain offshore assets less attractive.

“While SBM Offshore has not publicly cited any specific frictions, the timing and context suggest that financial, operational, and environmental considerations all played a role in the decision.”

Bhekumuzi Bhebhe, Campaigns Lead of Don’t Gas Africa, an NGO, said that while the company officially frames the divestment within its broader portfolio rationalisation strategy, Western energy companies are increasingly recalibrating African holdings amid global energy transition pressures, maturing assets, and tightening ESG expectations.

He said the divestment of FPSO Aseng also presents a key point around African agency in managing its natural resources. “The transition from SBM Offshore to GEPetrol should not be seen merely as an operational handover — it is a symbol of evolving ownership dynamics in African energy.

“Historically, much of Africa’s offshore production has been dominated by international oil companies, with African states often relegated to passive participation or minority stakes. The increasing drive for local ownership reflects a broader push toward resource sovereignty, where host nations seek not only a larger share of revenues, but also greater control over operations, decision-making, and long-term environmental stewardship.”

SBM Offshore didn’t give clear details on the specific reason for this divestment. The company only mentioned that it’s part of their strategy to rationalise their assets.

When Gas Outlook reached out to Giampaolo Arghittu, head of external communications, he didn’t provide anything different to what was released publicly.

GEPetrol’s offshore ambitions

Bhekumuzi said this marks a big step for GEPetrol in asserting operational sovereignty over national offshore resources. He said becoming the sole operator of the FPSO Aseng signals a maturation of domestic capabilities and a desire to build technical, managerial, and commercial capacity in the upstream sector.

“Strategically, this move supports Equatorial Guinea’s ambition to retain more value within its borders while reducing reliance on foreign operators. It may also serve as a prototype for future state-led operations or partnerships in West Africa. However, while local control is a critical step toward energy sovereignty, the dangerous and shortsighted ambition of doubling down on fossil gas particularly as global demand plateaus is debatable,” he said.

National ownership must not become a substitute for a credible transition strategy or diversification beyond volatile fossil fuel markets, he said. “How can Guinea use this as an entry point to repurpose its industry for renewable energy energy especially offshore wind. The country already has significant experience and infrastructure related to offshore oil and gas exploration and production, which could be leveraged for offshore wind development which would be more economically beneficial in the long-term and for development.”

Environmental standards

Alex said SBM Offshore is known for its commitment to environmental performance, including initiatives like emissionZERO and adherence to EU-level ESG standards. However, he said the key question now is whether GEPetrol will maintain these standards or adapt them to local regulatory frameworks, which may not be as stringent.

He further said that the risk of environmental standards being diluted exists unless GEPetrol commits to transparent ESG reporting and independent oversight.

“Finally, the divestment raises important questions about the future of decommissioning and carbon emissions management for FPSO Aseng. The vessel has been in operation since 2011, and like many aging FPSOs, it likely faces increasing maintenance needs and higher emissions intensity. SBM Offshore has experience managing these lifecycle challenges, but with GEPetrol now in charge, the responsibility for long-term decommissioning planning, emissions tracking, and potential retrofitting shifts entirely to them.

“If GEPetrol does not have a clear carbon management strategy in place, this could lead to increased emissions and potential scrutiny from international stakeholders concerned with environmental performance,” he warned.

Bhekumuzi further added that SBM Offshore has a history of maintaining internationally recognised offshore standards, and the success of the handover will partly depend on whether GEPetrol can uphold or improve these benchmarks. However, he said that without independent oversight or transparency measures, there’s a risk of dilution.

As regards clarity on future liabilities, particularly concerning emissions reductions, he said flare minimisation — and asset disposal — remains essential.

“Without explicit provisions and transparent enforcement mechanisms, there is a real risk that legacy environmental obligations may be under-resourced or deferred, especially as financial and technical responsibility shifts from international operators to national entities. Look at it from this way, communities least responsible for global emissions often bear the ecological and health burdens of fossil fuel infrastructure,” he said.

In addition, the “prevailing narrative of fossil gas as a ‘clean’ or ‘transition’ fuel increasingly falls short of both climate science and economic viability,” Bhekumuzi stressed.

“Locking into gas infrastructure risks perpetuating dependence on carbon-intensive systems under the guise of development, while diverting resources away from clean transformative energy pathways,” he concluded.

(Writing by Samuel Ajala; editing by Sophie Davies)