Gabon is pushing for deepwater oil and gas exploration to launch new projects and reverse declining production across Central and West Africa.
Oil and Gas Minister Sosthène Nguema Nguema announced the government’s commitment to unlocking deepwater acreage, 72% of which remains unexplored.
To advance this goal, Gabon is updating its petroleum legislation to introduce new incentives aimed at attracting investment in deepwater prospects.
The state is positioning the Gabon Oil Company to play a stronger operational role while revitalizing dormant assets through strategic acquisitions, including the takeover of Carlyle-owned Assala.
By promoting deepwater development on a global scale, Gabon expects to increase production and emerge as a regional center for refined product distribution.
The country is aiming for production levels near 1 million barrels per day, with a near-term goal of sustaining output above 220,000 barrels per day.
This target is expected to be more achievable as deepwater exploration advances.
Legal reforms form a key part of Gabon’s exploration agenda, helping to boost competitiveness and attract foreign interest in its offshore blocks.
The 2019 Hydrocarbons Code marked an initial step in this direction, laying the groundwork for improved investment terms.
Gabon’s new leadership plans to build on these reforms to compete more effectively with other offshore producers.
Past updates to the code improved production sharing terms, increased state profitability, and adjusted tax regimes to shorten the path to returns for investors.
Further revisions are expected to strengthen investor confidence and encourage deeper exploration commitments.
Several international companies are already moving forward with offshore projects, signaling confidence in Gabon’s energy potential.
BW Energy, for example, signed exploration contracts in 2024 for the Niosi Marin and Guduma Marin blocks, covering an eight-year term with a two-year extension option.
Alongside VAALCO Energy, BW Energy plans to drill one well and conduct 3D seismic surveys.
BW Energy also has a stake in the Dussafu license, which includes 14 producing wells connected to a floating production vessel via a 20 km pipeline.
Partners in the Dussafu project include Gabon Oil Company and Panoro Energy.
Perenco drilled the Hylia South West discovery in early 2024, confirming oil-bearing columns in the Ntchengue Ocean reservoir.
CNOOC launched wildcat drilling on blocks BC-9 and BCD-10 in early 2023, supported by an estimated 1.4 billion barrels of recoverable resources that could double Gabon’s output and reduce risks associated with deepwater exploration.
Despite ongoing activity, large portions of Gabon’s deepwater areas remain unexplored, offering significant opportunity for current and future operators.
New discoveries and expanded production are expected to support Gabon’s vision of becoming a petroleum hub for the region.
Situated strategically on Central Africa’s western coast, Gabon is building its capacity in refining, storage, and distribution.
Perenco is developing the $2 billion Cap Lopez LNG terminal, targeting first output by 2026.
The facility will house a floating LNG unit to process offshore gas and reduce flaring, with a production capacity of 700,000 tons of LNG and 25,000 tons of LPG and storage of 137,000 cubic meters.
This complements the Batanga LPG plant, which began operating in December 2023 with a projected annual output of 15,000 tons of LPG.
Gabon also plans to upgrade its sole refinery, SOGARA, from 1.2 million to 1.5 million tons annually.
This expansion is designed to ensure domestic self-sufficiency in refined fuel products by 2030.
source: oilreviewafrica.com
African Energy Council