Will Gabon be able to diversify its economy away from oil ?

Depuis les premières prospections en 1948 et les débuts de la production en 1956, l’industrie pétrolière au Gabon a connu une croissance significative. En 2024, le pays compte 875 puits en production, bien en deçà des 2 000 puits forés par le passé. Les réserves actuelles permettent d’envisager une production continue pour les 12 prochaines années, avec des efforts constants pour prolonger cette durée.

Strategies for extending oil reserves

Gabon, rich in natural resources, is struggling to diversify its economy and is still heavily dependent on oil. Despite declining production, in 2022 the country recorded its highest budget surplus since the oil shocks of 2014, according to the World Bank. However, oil exports, which account for 67% of total exports, fell by 4.7% in 2023, to CFAF 3,992.7 billion from CFAF 4,190.5 billion in 2022.

Reserves and projections

Ernest Ndong Nguema, Director General of Hydrocarbons (DGH), said that current crude oil reserves would enable production to be maintained for 12 years, based on average daily production. Every year, activities are carried out to increase reserves and push back this deadline. The DGH is encouraging investors to launch drilling and development programmes to discover new pockets of hydrocarbons around existing facilities and maximise the exploitation of producing fields.

Current production and economic contributions

Currently, 875 wells are producing in Gabon, generating around 214,000 barrels per day, or 8.036 billion CFA francs per day. The main companies operating are Perenco (75,000 barrels/day), Assala (52,000 barrels/day), BW Energy (23,000 barrels/day), TotalEnergies (20,000 barrels/day), Maurel & Prom (20,000 barrels/day), Vaalco (16,000 barrels/day), and the Gabon Oil Company (GOC) (6,300 barrels/day). Production is spread across four provinces: Ogooué-Maritime, Nyanga, Moyen-Ogooué and Ngounié.

Tax benefits and opportunities

Under Gabon's Hydrocarbon Code, the State receives between 7% and 15% of each barrel produced via the proportional mining royalty. Depending on the level of production, the percentages shared between the operator and the State vary, with the latter receiving at least 45% and generally up to 60% of the profits. GOC's takeover of Assala also aims to maximise the economic benefits for Gabon.

The oil industry remains a pillar of the Gabonese economy. With strategies to extend reserves and maximise profits, Gabon is seeking to stabilise its production and ensure sustainable exploitation of its oil resources. Efforts to diversify the economy remain crucial to reducing dependence on oil and ensuring long-term sustainable development.