To establish itself as a competitive upstream player, Gabon Oil Company Director General Marcellin Ngabi will participate in the African Energy Week: Invest in African Energy conference in November.
Gabon has set an ambitious goal of increasing its oil production to 220,000 barrels per day (bpd). To achieve this objective, the country is actively promoting investment opportunities in both onshore and offshore acreage, while simultaneously exploring avenues for the development of marginal fields. With proven oil reserves exceeding two billion barrels, Gabon is dedicated to capitalizing on its untapped hydrocarbon resources to drive long-term and sustainable economic growth.
As the national oil company (NOC), Gabon Oil Company (GOC) endeavors to lead production growth while collaborating with international stakeholders to mitigate natural declines and optimize mature fields. GOC's General Director, Marcellin Ngabi, will present at the African Energy Week (AEW): Invest in African Energy conference, taking place from November 4-8 in Cape Town. During the event, Ngabi is anticipated to outline compelling investment opportunities within the nation's oil and gas sector while engaging with a diverse range of regional and global industry players.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit https://www.AECWeek.com for more information about this exciting event.
While Gabon is one of Africa’s most historic oil producers, natural declines in mature fields have seen production fall in recent years. As such, the country is revitalizing its hydrocarbon industry by implementing attractive fiscal and contractual policies, incentivizing exploration and deploying innovative technologies to enhance oil recovery. At the helm of this is the GOC, which has been acquiring assets to drive production growth across the country. In February 2023, the NOC acquired the Gabonese assets of private equity firm Carlyle – the owner of oil and gas company Assala Energy. The deal includes seven onshore production licenses, a pipeline network and the Gamba export terminal. Assala Energy represents the second biggest producer in the country and focuses on brownfield assets.
The deal comes amid a string of upstream developments in the country, all of which the GOC has interests in. In November 2023, oil and gas company BW Energy made a commercial discovery at its Hibiscus South satellite prospect offshore Gabon. The discovery was estimated to contain approximately 16 million barrels of oil in place. In March 2024, the company announced that production had officially commenced – averaging between 5,000 and 6,000 bpd -, merely five months since the discovery was made. This fast-tracked approach aligns with national objectives to bring new projects online and fast. Concurrently, the company increased production at the Dussafu Marin Permit after completing four production wells in 2023. Each well produces an average of 6,000 to 6,500 bpd.
Meanwhile, independent oil and gas Perenco began appraisal drilling near its Hylia South West discovery in February 2024. The company targets additional reservoirs and to establish estimated oil volumes in place – estimated between 20 and 100 million barrels. Independent energy company VAALCO Energy is purusing near-field development at the Etame Marin Offshore Fields Development while energy major TotalEnergies is investing in well intervention after signing a 25-year contract for the Baudroie-Mérou Marine G5-143 permit. As such, across the country, focus has shifted towards optimizing mature and marginal assets while leveraging innovative technology to ensure every drop is recovered..
Beyond existing fields, companies are ramping up exploration. Chinese firm CNOOC began wildcat drilling at Blocks BC-9 and BCD-10 in 2023. The company is looking at deploying an FLNG vessel following the discovery of sufficient oil and gas volumes. To support production growth, further exploration is required and the GOC is committed to supporting projects in this area.
In addition to oil developments, the Government of the Republic of Gabon (GOC) is actively promoting the monetization of natural gas resources in the country. Guided by the Gas Master Plan, the GOC aims to swiftly expand the domestic gas industry by harnessing an estimated three to five trillion cubic feet of reserves. This strategic initiative is driven by the objectives of fostering economic growth and enhancing energy accessibility.
Key focus areas within the Gas Master Plan encompass the development of liquefied petroleum gas (LPG), liquefied natural gas (LNG), and compressed natural gas (CNG) solutions. Additionally, the plan emphasizes the importance of gas-to-power projects and the establishment of associated downstream industries. By reducing gas flaring, developing domestic industries, and supporting the transition to alternative fuel sources, the Gas Master Plan aligns with the GOC's long-term vision for sustainable development.
Among the ongoing projects contributing to the realization of the Gas Master Plan is Perenco's $1 billion Cap Lopez LNG terminal, anticipated to commence operations in 2026. This project is poised to produce 70,000 tons of LNG and 25,000 tons of LPG annually. Furthermore, Perenco's LPG plant in Batanga, which commenced operations in December 2023, has the capacity to produce 15,000 tons of LPG per annum.
“Gabon is making great strides towards monetizing resources at both mature and emerging assets. The GOC has been at the forefront of this. By prioritizing near-field development and supporting exploration campaigns offshore, the country is well on track to increase production. At the same time, efforts to strengthen the domestic gas economy is already bearing fruit as LNG and LPG projects gain momentum. This fast-tracked, multi-faceted approach to oil and gas development is a model that should be replicated continent-wide,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.