This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 4/9/2019

Overview

Gabon is currently the eighth largest producer of oil in sub-Saharan Africa with a production of 198,000 barrels per day.  Petroleum is the primary source of public revenue in Gabon.  Gabon rejoined OPEC in the summer of 2016.  The World Bank estimated that, on average over the period of 2010-2015, Gabon’s oil sector accounted for 80 percent of exports, 45 percent of GDP, and 60 percent of government revenue.  However, in 2017, oil revenues accounted for 27% of GDP and approximately 35% of government revenues.  With Gabon’s overwhelming economic reliance on oil exports, the country’s near-term economic outlook depends on oil production and prices.  Gabon’s mature oil fields are in decline, with peak production in 1997 at 370,000 barrels per day (bpd) according to the U.S. Energy Information Administration.  Production in 2017 was estimated at 10.5 millions of tones (Gabonese authorities estimation).  New offshore prospects have been identified.

In March 2018, Gabon organized a meeting in Libreville with oil sector experts to focus on revisions to the 2014 oil code, to make it more attractive and adapt to the current realities of the sector.  Under the current code, Gabon takes a minimum 20% stake in oil projects, while country-owned Gabon Oil Co. (GOC) is entitled to a further 15% stake.  Like other oil-dominated economies of the CEMAC’s single-currency zone, Gabon has struggled due to the decline in crude prices, forcing it to seek support from the International Monetary Fund (IMF) in 2017.  While full details of the new code have not been released, the new updated code should improve flexibility along with revisions to company income and value-added taxes.  The new code is expected to be effective before the end of 2018. 

Since the drop of the price of oil beginning in 2014, the number of U.S companies in Gabon has fallen.   However, interest in offshore oil permits remains high.  Malaysian state-owned company Petronas announced in March 2018 that their ultra-deep-water exploration well, drilled in water depths of 2,800 meters, encountered 90 meters of gross high-quality hydrocarbon-bearing pre-salt sands.  The discovery has piqued the interests of the industry and may augur renewed interest in Gabon as prices rise again. 

Sub-Sector Best Prospects

There are opportunities for oil sector services companies as new entrants in the market for deep off-shore exploration and development.

Resources

Direction Général des Hydrocarbures
Ministère du Pétrole et des Hydrocarbures (Ministry of Petroleum and Hydrocarbons)
B.P. 576
Libreville, Gabon
Tel. +241-01-77-31-68
Protocol +241 06-97-92-49
 
Gabon Oil Company (GOC)
Patrichi Christian Tanasa, Director General
Tel. +241-06-00-81-81
 
Union Pétrolière Gabonaise/UPEGA (Association of Petroleum Companies)
B.P. 146
Port Gentil, Gabon
Tel. +241-55-83-03
Fax +241-55-80-55

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