Equatorial Guinea: oil royalties and taxes under the Hydrocarbons Law
- Royalty
- Minimum 13%, rising in steps with average daily production 1
- Income tax
- 35% under the tax law 1
- State participation
- Minimum 20% carried working interest during exploration 1
- Bonuses
- On contract signature, on notice of a commercial discovery and on production targets 1
- Hydrocarbon revenue, 2024
- CFAF 1,124 billion, 14.5% of GDP 4
- EITI status
- Not a member, left on 16 April 2010 5
The Hydrocarbons Law
The Hydrocarbons Law is Decree Law No. 8/2006 of November 2006. The Ministry of Mines, Industry and Energy published a summary of the law and of its Model Production Sharing Contract, with links to the official Spanish versions 1.
Under Article 1, all hydrocarbon reservoirs are the exclusive property of the State. The State may run petroleum operations through national companies or with a contractor, according to the International Energy Agency 2.
The ministry in charge of hydrocarbons negotiates, signs and executes contracts with contractors. The law prohibits contractors from flaring natural gas, with exceptions the ministry may authorize 2.
Royalty, tax and the State's share
The ministry's summary sets out these terms for production sharing contracts 1.
- Royalty at a minimum rate of 13%, escalating in steps according to average daily production 1.
- Income tax under the tax law, at 35% 1.
- A minimum 20% carried working interest for the State during the exploration phase 1.
- Cost recovery from a negotiated share of production net of royalty, with unrecovered costs carried forward 1.
- Profit oil shared on a stepped scale tied to cumulative production 1.
- Bonuses payable on contract signature, on notice of a commercial discovery and on production targets 1.
Hydrocarbon revenue
IMF staff said hydrocarbon revenue in 2024 was about 20% lower than in 2023 4. The IMF Executive Board noted a continued decline in hydrocarbon production placing sustained pressure on fiscal and external balances 3.
IMF staff expect hydrocarbon output to fall about 2.3% a year from 2025 to 2030 4. Figures for 2025 and 2026 in the table are IMF projections 4.
Transparency and IMF findings
Equatorial Guinea joined the EITI on 22 February 2008 and left on 16 April 2010. The EITI Board declined its request to extend the validation deadline 5. A candidature application submitted in October 2019 was not admitted. The Board decided on 14 February 2020 5.
The IMF staff report of 26 June 2025 says the authorities published extractive-sector contracts, meeting an end-July 2024 benchmark 4. A new benchmark for end-April 2026 calls for an annual report on production and audited government and company payments, with an independent reconciliation 4.
The same report identifies the extractive sector as the main ultimate source of wealth and of illicit financial flows 4.
IMF press release 25/267 of 25 July 2025 says the authorities did not publish asset declarations of public officials, missing two structural benchmarks. IMF Management approved a 12-month extension of the Staff-Monitored Program on 25 June 2025 3.
Common questions
What royalty does Equatorial Guinea charge on oil?
The Ministry of Mines, Industry and Energy describes a minimum royalty of 13%, rising in steps with average daily production 1.
What is the corporate tax rate on oil companies in Equatorial Guinea?
Income tax applies under the tax law at 35%, according to the ministry's summary of the petroleum framework 1.
How much does Equatorial Guinea earn from hydrocarbons?
IMF staff put hydrocarbon revenue at CFAF 1,399 billion in 2023 and CFAF 1,124 billion in 2024, or 14.5% of GDP in 2024 4.
Is Equatorial Guinea in the EITI?
No. It joined in 2008 and left on 16 April 2010. A 2019 application was not admitted 5.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- Ministerio de Minas, Industria y Energia: Legislation page, archived copy printed 15 March 2016
- International Energy Agency: Hydrocarbons Law No 08/2006 (updated 23 December 2020)
- IMF: Press Release No. 25/267, Equatorial Guinea Article IV consultation and reviews under the Staff-Monitored Program (25 July 2025)
- IMF: Country Report No. 25/224, Republic of Equatorial Guinea, 2025 Article IV Consultation staff report (26 June 2025)
- EITI: Equatorial Guinea country page (accessed 20 October 2026)
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