Guinea - Country Commercial Guide
Oil and Gas

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-10-15

Overview

The Guinean government sets the price of gasoline at the retail level, subsidizing prices to ease the burden on consumers and changing prices according to the demands of international lenders and the global price of gasoline.  Due to a decrease in world oil prices in 2015, the government reduced the price of gasoline from 10,000 GNF/liter to 9,000 GNF in February 2015 and then to 8,000 GNF/liter in March 2015.  The government then readjusted the price of all grades of fuel to 10,000 GNF/liter in July 2018.  In April 2020 the government readjusted the price back down to 9,000 GNF/liter in response to the COVID-19 pandemic and falling global oil prices, before increasing it to 11,000 GNF/liter in August 2021.  As of July 2021 the exchange rate stands at roughly USD 1 to  9,761 GNF, effectively pricing Guinean fuel at USD 1.13/liter.

Storage capacity of petroleum products in Guinea is a problem, with the sole importer, the semi-public Guinea Petroleum Company (SGP), having storage capacity for about three weeks of demand.  In March 2021, the government created the National Petroleum Import Company (SONIP) to import, store, transport, distribute, and sell fuel.  While SONIP is not yet operational, SONIP will eventually manage downstream operations in Guinea, while the Nationl Petroleum Office (ONAP) will manage upstream operations like exploration and production.  There is no petroleum refinery in Guinea, meaning that even the slightest disruption in fuel deliveries can provoke fuel shortages.  Major consumers include mining companies, retail gasoline stations, and the state-owned electric utility’s diesel generators.

Leading Sub-Sectors

The extent of Guinea’s potential oil and gas reserves remains unknown, but promising.  A U.S.-owned firm conducted oil exploration studies off Guinea’s coast.  In February 2012, their first exploratory well uncovered oil of a non-commercial quality.  In September 2017, their second exploratory offshore drilling reportedly did not find commercially exploitable quantities of oil.  In December 2018, the U.S. firm filed for bankruptcy after an investor pulled out of a deal to buy a majority stake in the company, following unsucessful offshore drilling.  In December 2018, the government turned down the U.S. company’s license extension request.  Other companies still believe there is commercially viable oil to be found, though no companies are actively searching.

Opportunities

The Guinean government is assessing ways to repair its dilapidated energy grid, and may seek new avenues to access petroleum products for its power plants.

Resources

  • Guinea Ministry of Energy
  • Guinean Ministry of Hydrocarbons
  • Guinean National Petroleum Office (ONAP)