- Gabon ranked sixth in oil production across Africa, is enhancing its oil and gas sector to drive long-term economic growth.
- The country is diversifying its energy portfolio by reducing greenhouse gas emissions and establishing new revenue streams.
- In June 2021, Gabon closed its 12th shallow and deep-water licensing round, which saw the provisional award of several blocks, with negotiations still ongoing.
Gabon, one of Africa’s most prolific oil and gas markets, has substantial offshore oil reserves that remain largely untapped, ranking it sixth in African oil production. The newly established Government of Transition has embarked on a concerted campaign to actively attract oil Exploration and Production (E&P) companies with the requisite capabilities to harness these valuable resources.
Gabon oil and gas sector
Additionally, the government has committed to supporting existing operators in increasing their output, focusing on enhancing gas production. These initiatives aim to advance the nation’s energy security and overall economic growth.
To attract essential capital and cutting-edge technology to drive project developments across Gabon’s entire oil and gas value chain, new Petroleum Minister Marcel Abeke will participate in this year’s edition of the African Energy Week (AEW) 2023 expo.
The AEW is the flagship annual energy event organized by the African Energy Chamber (AEC), from October 16 to 20 in Cape Town, South Africa.
Minister Abeke’s involvement in this event underscores Gabon’s recognition of the AEW as a pivotal platform for scouting new investment into the Gabonese oil and gas sector. Minister Abeke brings a wealth of experience to this role, boasting over three decades of senior leadership positions in the private sector, with particular expertise in the mining industry.
The new government in Gabon has pledged to undertake significant measures to enhance the operational landscape within the oil and gas sector. This effort encompasses initiatives to improve transparency, streamline bureaucratic processes, and foster enduring economic growth.
Gabon’s North Basin Area
Further, Gabon intends to leverage the accomplishments of the 2019 Hydrocarbon Code as a foundational framework while simultaneously exploring avenues for its enhancement and adaptation to the evolving dynamics of the market.
This endeavor aims to create a conducive environment that will attract heightened international investments in E&P activities. This strategic move is anticipated to attract new entrants, particularly to Gabon’s North Basin Area, an area with substantial pre-salt reserves with the potential to be transformative.
Gabon, additionally, offers excellent prospects for the revitalization of mature and marginal oil fields. Consequently, the Ministry is intensifying its efforts to champion innovative solutions to enhance the profitability of the nation’s oil production endeavors.
In step with newly established commercial terms designed to incentivize investment within Gabon’s petroleum sector, several companies, including Assala Energy, BW Energy, and Panoro Energy, entered the market in 2016 and 2017.
Their primary objective was to rejuvenate existing assets by employing advanced oil recovery techniques and explore prospects for developing marginal fields.
Offshore exploration
In June of 2021, Gabon successfully concluded its 12th shallow and deep-water licensing round. This process led to the provisional allocation of numerous blocks, with ongoing negotiations.
International Oil Companies (IOCs) such as TotalEnergies and VAALCO Energy have increasingly emphasized offshore exploration nearby. This effort resulted in the fresh discovery of the South Tchibala 1HB-ST well in June last year.
At the same time, French oil and gas enterprise Maurel & Prom has outlined plans to allocate $85 million investment towards implementing new exploration and seismic activities within Gabon. These efforts will be directed toward the operation of onshore Ezanga Permit Fields.
In the realm of natural gas, Gabon’s Hydrocarbon Code places a significant focus on monetizing and effectively using this valuable resource. Although Gabon lacks established pure gas fields, it has substantial gas reserves derived from its oil fields. However, these reserves have remained underutilized until recently.
Notably, Perenco, an independent oil and gas company, successfully secured a billion-dollar investment for the establishment of a liquefied natural gas (LNG) plant in Cap Lopez.
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Gabon’s reliance on gas imports
This landmark development marks the maiden export of Gabonese gas from offshore fields. Estimates show that the LNG plant will yield an annual production capacity of 700,000 tonnes of LNG and 20,000 tons of butane. Once in full operation, the gas plant will diminish the country’s reliance on gas imports and establish Gabon as self-sufficient in this critical energy resource.
Further, a Memorandum of Understanding (MoU) was formally executed between Perenco and the Gabon Power Company, paving the way for constructing a 21MW gas-fired power plant in the Mayumba area.
This investment offers several benefits, including the opportunity to create jobs, the provision of electricity to roughly 80,000 households, as well as enhancing the country’s rural electrification progress. Additionally, this initiative generates carbon credits and unlocks substantial economic potential, positioning Gabon favorably in its pursuit of sustainable growth and energy self-reliance.
Moreover, this forward-thinking initiative serves a dual purpose: first, it aims to mitigate the prevalent industry practice of gas flaring, and second, it endeavors to fortify energy security.
By effectively harnessing its gas resources, Gabon is diversifying its energy portfolio, reducing greenhouse gas emissions, and establishing supplementary revenue streams.
Gabon energy security measures
This strategic maneuver presents an enticing prospect for potential investors seeking involvement in the gas sector, harmonizing with Gabon’s path toward sustainable energy advancement and stimulating the economy.
Guided by the leadership of Minister Abeke, the Ministry remains resolute in its dedication to fostering active collaboration with diverse government entities, international institutions, and pertinent industry stakeholders. This collective effort is geared towards optimizing the pivotal role played by the oil and gas sector in reinforcing Gabon’s economy and fortifying its energy security measures.
“Gabon’s oil and gas prospects are nothing short of remarkable, as it stands at the forefront of Africa’s sustainable oil and gas future. With untapped offshore oil reserves, a forward-thinking Hydrocarbon Code, Gabon is not only enhancing its energy security but also contributing significantly to regional energy sustainability,” states NJ Ayuk, the Executive Chairman of the AEC.
During AEW 2023, attendees will gain valuable insights into Gabon’s burgeoning energy landscape. Minister Abeke will shed light on the nation’s oil and gas projects, highlighting Gabon’s role in enhancing Africa’s energy security and sustainability efforts.
