Energy
From The Report: Gabon 2014
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Gabon is the fifth-largest oil producer in sub-Saharan Africa and oil dominates the economy, accounting for roughly half of state revenues and more than 80% of export revenues. Over the last decade, however, output has declined as the country’s larger oil fields mature.

Oil production peaked in 1997 at 370,000 bpd but stabilised in recent years around 240,000 bpd. The decline in production has prompted Gabon to encourage activity in smaller blocks, expand offshore exploration in new blocks, and continue redeveloping existing oil fields. The government has set targets of doubling output to 500,000 bpd and re-joining Organisation of the Petroleum Exporting Countries, which it left in 1997. The government is also taking a more active role in the sector through its still relatively young state-owned oil company, while also tightening oversight. To improve transparency and boost the state’s share of oil revenues, the government has overhauled the legal framework governing the hydrocarbons sector. The new bill was adopted by parliament on July 23, 2014. Under the new hydrocarbons code, the national oil company will have the right to a 15% share in all new petroleum operations, which may strengthen the sector by encouraging shared-equity partnerships between local and foreign players.

This chapter contains interviews with Désiré Guedon, Minister of Energy and Water Resources; Etienne Dieudonné Ngoubou, Minister of Petroleum and Hydrocarbons; Jacqueline Bignoumba, President, Gabon Petroleum Union; and Nicholas Cooper, Executive Director & CEO, OPHIR Energy.

Articles from this Chapter

Overview

As production drops at older oil fields, exploration efforts are increasing
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Gabon is the fifth-largest oil producer in sub-Saharan Africa and oil dominates the economy, accounting for roughly half of state revenues and more than 80% of export revenues. Over the last decade, however, output has declined as the country’s larger oil fields mature, prompting Gabon to encourage activity in smaller blocks expand offshore exploration in new blocks, and continue redeveloping existing oil fields. The government is also taking a more active role in the sector through its still relatively…

Interview

Power up: OBG talks to Désiré Guedon, Minister of Energy and Water Resources
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Interview:Désiré Guedon What are the main obstacles to improving electricity and water production? DÉSIRÉGUEDON: The current network has been structurally deficit for the last 15 years. The supply of electricity and water should reflect demand, urban development and the need to diversify energy sources. In this regard, the government aims to change the current situation by reinforcing the investment in order to develop the sector. Gabon has a clear vision and development strategy…

Analysis

Offshore blocks: After successful finds in recent years, the drilling continues
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The offshore oil potential in Gabon has generated significant interest among oil companies in recent years due to the area’s geological similarities with Brazilian pre-salt layers, to the success of offshore blocks elsewhere in the Gulf of Guinea and to indications that it may contain analogous hydrocarbons systems. The large number of companies bidding on the offshore blocks that were offered in October 2013 reflects the consensus that offshore Gabon holds considerable promise for exploration…

Interview

A new blueprint: OBG talks to Etienne Dieudonné Ngoubou, Minister of Petroleum and Hydrocarbons
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Interview:Etienne Dieudonné Ngoubou What measures are planned in the new hydrocarbons code to ensure better integration of small and medium-sized enterprises (SMEs)? ETIENNE DIEUDONNÉ NGOUBOU: The new hydrocarbons code, launched by President Ali Bongo Ondimba in the Emerging Gabon development plan, has three main objectives: optimise petroleum revenues, promote an industrial fabric in the sector and strengthen national capacities. The first is intended to attract investors in the hydrocarbons…

Interview

OBG talks to Jacqueline Bignoumba, President, Gabon Petroleum Union (UPEGA)
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Interview:Jacqueline Bignoumba What is contributing to the current skills shortage? JACQUELINE BIGNOUMBA: Nowadays, 90% of oil industry jobs are done by locals. The Gabonisation process implies inserting as many locals as possible into management positions through targeted knowledge-transfer training or programmes. However, the real problem in Gabon is the shortage of population, which affects all industries. Furthermore, this shortage is exacerbated due to the lack of technical and scientific…

Analysis

Despite its vast potential, hydroelectric generation still takes second
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Having a large hydroelectric generation base is a boon to Gabon, giving it low-cost renewable energy. It is hydrocarbons, however, that continue to power most of the country’s plants. According to the most recent statistics available from the US Energy Information Administration (EIA), from 2011, non-renewable thermal energy sources top hydroelectricity, which produced 45.7%, or 809 GWh of the 1769 GWh generated that year. The rest came from gas (584 GWh), oil (367 GWh) and biofuels (9 GWh), with…

Interview

OBG talks to Nicholas Cooper, Executive Director & CEO, OPHIR Energy
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Interview:Nicholas Cooper What is the potential in deepwater offshore blocks? NICHOLAS COOPER: Gabon remains an underexplored, attractive margin that displays all the characteristics of multiple working petroleum systems. Our understanding of these distal margins is ever evolving as new well information and high-quality seismic data become available. Multiple major discoveries at the very distal edges of the continental margins have challenged us to revaluate areas that were once written…