Energy
From The Report: Gabon 2013
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Over the last 50 years Gabon’s economy has been largely dependent on oil extraction and this continues to be true today. After reaching peak oil production in 1997, with an average of 370,000 barrels per day (bpd), maturing oil fields and slowing discovery rates have resulted in a decline in output to 245,000 bpd in 2012. Oil companies are embarking on major investment programmes to help boost production from a number of existing oil fields. Access to electricity and water continues to be a challenge, and the government is undertaking a number of reforms to help consolidate the sector. In addition to more conventional renewable resources such as hydro, solar and wind, the government is also exploring the potential of biomass by, for example, using wood waste to generate electricity.

This chapter contains interviews with Etienne Ngoubou, Minister of Petroleum, Energy and
Hydroelectric Resources; and Izak Elyashiv, CEO, Telemenia; as well as a viewpoint from Charles Tchen, CEO, Independent Petroleum Consultants.

Articles from this Chapter

Overview

Seeking new fields: Drilling continues as operators await the new hydrocarbons code
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Over the last 50 years Gabon’s economy has been largely dependent on oil extraction and, despite declining levels of oil production and government efforts to promote economic diversification, this continues to be true today. According to the World Bank, oil has on average accounted for 45% of GDP, 81% of exports and 60% of budget revenue over the last five years. PRODUCTION LEVELS: Gabon first found a commercially exploitable oil field in 1956 and, as new discoveries continued, so did drilling…

Interview

Maximising resources: OBG talks to Etienne Ngoubou, Minister of Petroleum, Energy and Hydroelectric Resources
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Interview:Etienne Ngoubou What is the timeline for deep offshore explorations? ETIENNE NGOUBOU: This year is a turning point for the hydrocarbons industry in Gabon, with deep and ultra-deep offshore exploration beginning. As a result of the government’s commercial campaigns, three companies – Total, Perenco and Shell – obtained licences to lead the exploration. Total Gabon began drilling at the Diaba block in the second quarter of 2013, and Shell and Perenco will start deepwater exploration…

Viewpoint

Charles Tchen, CEO, Independent Petroleum Consultants, on the structure of the oil sector
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The country’s production has been successfully maintained at 240,000 barrels per day (bpd) over the past four years and is expected to remain at that level for the next three years. Major producers are Perenco, Shell and Total, with each producing about 60,000 bpd. In 2013, three oil discoveries have been made: Mitsubishi Petroleum had a marginal and sub-economic discovery in the Nguma block, which has now been relinquished and returned to the state; Vaalco and Total made a discovery in…

Analysis

Heading offshore: Deepwater drilling begins, as encouraging prospects emerge closer to the coast
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In April 2013, the Ocean Rig Olympia started drilling a first well at 1700 metres of water depth to test the pre-salt potential of Diaba, an oil block located in Gabon’s southern basin and owned by Total Gabon (42.5%), Marathon Oil (21.25%), Cobalt International Energy (21.25%) and the government of Gabon (15%). This is the first deepwater or ultra-deepwater block to be explored in Gabon and the positive results, which were released in August 2013, provide encouraging clues as to the potential…

Interview

OBG talks to Izak Elyashiv, CEO, Telemenia
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Interview:Izak Elyashiv What are the challenges in connecting isolated areas into national power grids? IZAK ELYASHIV: The main challenge is the long distances between cities, with the cost of high-tension electrification lines making the provision of electricity to those areas particularly difficult. Most of the time, that price is higher than any other cost related to the construction of these kinds of infrastructure. Between large cities, only small villages and a few people need electricity,…

Analysis

Sustainable sources: Promoting investment in renewable energy to achieve a competitive and sustainable supply of electricity in the medium to long term
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According to the African Development Bank (AfDB), Gabon has an urbanisation rate of 87% and a similarly high rate of access to electricity, ranging between 70% and 83%. Despite this, the country has experienced difficulty ensuring a stable supply of energy at an affordable cost. High electricity prices, coupled with a struggle to keep up with rising demand, have led the government to support the development of renewable energies in an effort to boost capacity, diversify the economy and power…

Analysis

Universal right: The government’s focus on water access expansion paves the way for infrastructure investment
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Together with a historical lack of investment in water infrastructure, the growth of cities has gradually resulted in uneven access to drinking water across the country and within urban centres. Furthermore, low investment in water cleaning infrastructure has raised sanitation and environmental concerns. Some projects have been implemented in recent years to address this, combining government funding, international lending and foreign expertise, and new projects, including what will be the country’s…

Analysis

New players: Institutional reforms promise to improve the coherence and efficiency of the water and electricity sectors
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Demand for power and water has increased in recent years, driven by growing populations in urban areas, expanding cities and the ambitious economic development plans gradually unfolding. This has put pressure on an already strained system, often resulting in power outages and water-related difficulties such as low pressure and poor quality. To tackle these challenges, the government has adopted a number of measures in recent years aimed at enhancing production capacity and service quality,…