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Equatorial Guinea - US Relations

Equatorial Guinea is the third-largest producer of crude oil in Sub-Saharan Africa, after Nigeria and Angola. Four American oil corporations dominate exploration and production in Equatorial Guinea: ExxonMobil, Hess, Marathon, and Noble Energy. The United States is the largest single foreign investor in Equatorial Guinea. Although the Chinese presence is growing rapidly, US companies still are the largest and most visible foreign presence in the country.

When Secretary of State Rice greeted President Obiang at the State Department in 2006 as a "good friend" of the United States, it was a friend of American mineral needs and oil industry, not of American interests in human rights and democracy. In welcoming Mr. Obiang, she made no mention of the deeply troubling hallmarks of his regime, no mention of human rights abuses, no mention of election fraud; no mention of widespread and high-level corruption. Instead, a photograph of Secretary Rice shaking Mr. Obiang's hand and smiling broadly appeared in publications around the world. Mr. Obiang has undoubtedly used his visit, and that photograph, to legitimize his regime and demonstrate his favored status in the United States.

The United States established diplomatic relations with Equatorial Guinea in 1968, following the country's independence from Spain. Relations between the US and the Government of Equatorial Guinea have been characterized as positive and constructive. Due to US Government budget restrictions, the embassy closed in 1995, and diplomatic and consular responsibilities were transferred to the US Embassy in Yaounde, Cameroon. The Department of State established a US Consular Agency in Bata in 2000. After being closed for 12 years, the United States Embassy in Malabo reopened in November 2006. The Equatoguinean Government views the U.S. Government and American companies favorably. In an effort to attract increased U.S. investment, American passport-holders are entitled to visa-free entry for short visits. The United States is the only country with this privilege.

Equatorial Guinea's President has held office for more than three decades, and his party dominates the legislature. Three major U.S. foreign policy issues form the cornerstone of the bilateral relationship with Equatorial Guinea -- good governance and democracy; the protection of human rights; and U.S. national security, especially access to energy resources. The United States seeks to encourage improved human rights, the development of a working civil society, greater fiscal transparency, and increased government investment in Equatorial Guinea's people in areas such as health and education. U.S. policy priorities in Equatorial Guinea are to encourage the government there to open democratic space to the opposition, increase respect for human rights and civil liberties, strengthen our commercial ties and diversify its economy, and to increase economic, health, and educational opportunities for all its citizens.

The U.S. Agency for International Development has several small regional projects, but does not have a presence within the country. The Ambassador's Self-Help Fund annually finances a number of small grassroots projects. Equatoguineans visit the U.S. under programs sponsored by the U.S. Government, U.S. oil companies, and educational institutions.

Equatorial Guinea's hydrocarbon riches dwarf all other economic activity; the country's oil reserves are located mainly in the Gulf of Guinea. U.S. oil companies are one of Equatorial Guinea’s largest investors, and they have a lead role in oil and gas exploration and extraction. Equatorial Guinea's exports to the U.S. are dominated by petroleum products. In an effort to attract increased U.S. investment, U.S. passport-holders are entitled to visa-free entry. Imports from the United States include machinery, iron and steel products, optic and medical instruments, and inorganic chemical and rare earth minerals.

Equatorial Guinea has used its oil wealth to expand its foreign presence, establishing diplomatic missions in other countries. Equatorial Guinea and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, and World Bank. The country also is an observer to the Organization of American States and World Trade Organization. Equatorial Guinea maintains an embassy in Washington, DC, and a consulate in Houston, Texas. President Obiang has worked to cultivate the Equatorial Guinea-U.S. relationship with regular visits to the U.S. for meetings with senior government and business leaders, as well as to the opening sessions of the United Nations.

Despite improvements in its record, the U.S. State Department Human Rights report on Equatorial Guinea for 2010 cited shortcomings in basic human rights, political freedom, and labor rights. U.S. Government policy involves constructive engagement with Equatorial Guinea to encourage an improvement in the human rights situation and the development of a working civil society. Equatoguineans visit the U.S. under programs sponsored by the U.S. Government, American oil companies, and educational institutions. The Ambassador's Self-Help Fund annually finances a number of small grassroots projects.

In view of growing ties between U.S. companies and Equatorial Guinea, the U.S. Government's overseas investment promotion agency, the Overseas Private Investment Corporation (OPIC), has concluded the largest agreement in Sub-Saharan Africa for a major U.S. project in Equatorial Guinea. The U.S. Agency for International Development has several small regional projects ongoing, but does not have a presence within the country. The Peace Corps has had no presence in the country since the mid-1990s. American-based non-governmental organizations and other donor groups have very little involvement in the country.

The U.S., without the baggage of the former colonialist powers active in the region or the econo-colonialism of the Chinese, is widely looked to by EG to provide a moral compass for this development. The change in the U.S. administration -- in the country with the highest per capita density of "Obamas" in the world -- was received as a herald of warmer relations. The largest portion of the Gulf of Guinea maritime territory belongs to little EG. To ignore the security implications associated with the country at the heart of this key region would leave a gaping hole in the map of US national strategy. Yet, with crypto-sanctions in place and a tiny embassy contingent severely constraining our engagement, that was essentially Bush Administration policy.