Obiang, who had criticised the government that resigned this month following one-sided May 4 elections, nevertheless reappointed around half of the old cabinet in the new administration headed by Prime Minister Ignacio Milam Tang.

Milam Tang, a former ambassador to Spain, was named to head the new government last week, but the full cabinet was appointed by a presidential decree late on Monday, state media reported.

Marcelino Owono Edu, who had served as minister of finance and budget since 2003, took over as minister for mines, industry and energy, which oversees the key oil and gas sector in Sub-Saharan Africa's third biggest crude producer.

Obiang, whose governing Democratic Party of Equatorial Guinea (PDGE) and its allies won all but one of the 100 parliament seats in May, has been calling for more effective use of the country's huge oil resources.

The president had accused the outgoing government of Prime Minister Ricardo Mangue Obama Nfube, who resigned, of widespread graft and security failings related to a 2004 coup plot.

Obiang, who has ruled since 1979, said he was "hurt" by the implication of some government members in the foiled conspiracy to topple him. Evidence of this emerged during the trial of British mercenary Simon Mann who was jailed for 34 years last week for his role in the 2004 plot.

Despite this, Obiang retained his old security team, reappointing Defence Minister Antonio Mba Nguema, Interior Minister Clemente Engonga Nguema and National Security Minister Manuel Nguema Mba.

SOME NEW FACES

He also kept on one of his sons, Teodoro Nguema Obiang, as minister of agriculture and forestry. Pastor Micha Ondo remained foreign minister.

Among the new faces in the cabinet was Pedro Ondo Nguema, who took over the economy, trade and business promotion post.

Owono Edu's former deputy in the Finance and Budget Ministry, Estanislao Don Malavo, took over as minister.

Obiang, a former military police officer who overthrew his dictatorial uncle Francisco Macias Nguema in a 1979 coup, is often accused by critics of favouring his family and Fang ethnic group in his rule over the Gulf of Guinea state.

While donors see an improvement over Macias' bloody rule, human rights groups such as Amnesty International say repression and torture of political opponents has continued under Obiang, although his government rejects this.

Since its first oil discoveries in the mid-1990s, Equatorial Guinea has become sub-Saharan Africa's third-largest crude exporter after Nigeria and Angola. But most of its population of around half a million still live in poverty and rights campaigners and donors blame this on widespread corruption.

U.S. oil companies dominate the fast-growing oil sector and Washington describes Obiang as a friend although it has also criticised his government's human rights record. China is also showing increasing interest in Equatorial Guinea.

In a speech earlier in July, Obiang said he would eventually give up power "with honour", but did not specify when.