(3 minutes read)
· The IMF and the Government of Gabon reached an agreement for
a US $147million facility that is meant to help Gabon address the
challenges that have arisen due to the global Covid-19 pandemic on
April1
· The oil sector’s recent (2019) increase in daily output was
by 11.9%. It played a major part in the improved projections.
· Gabon can attract more investments into its oil and gas
sector in the post covid-19 than other oil dominant economies since it
has the second highest number of rigs offshore behind Nigeria in the
entire sub Saharan Africa.
The IMF and the Government of Gabon reached an agreement for a US
$147million facility that is meant to help Gabon address the
challenges that have arisen due to the global Covid-19 pandemic on
April1. Gabon’s economy is primarily dependent on the hydrocarbon
sector. The country produces 210,000 barrel per day oil. The gas
sector had a projected growth rate for 2020 of 3.7%, which is higher
than the regional Central African (CEMAC) average at 3.5%.
The oil sector’s recent (2019) increase in daily output was by 11.9%
. It played a major part in the improved projections. New discoveries
were reported from offshore such as BW Offshore’s Dussafu licence,
American minor Vaalco’s South East Etame license etc. which have
become operational in record time. This helped the investments to
flow into the country at an accelerated rate.
Now, the adjusted post-covid GDP growth rate, according to IMF’s
projection for 2020 for Gabon stands at -1.2%., which is way below the
initial 3.7% projections at the beginning of the year, though it is
significantly better than -10% forecast for some of the Gabon’s oil
producing peers. However, the long term projections for the country at
2% in 2021 and 3.2% in 2022 on the assumption that the ongoing global
pandemic comes under control later this year, is encouraging for the
country .
Gabon can attract more investments into its oil and gas sector in the
post covid-19 than other oil dominant economies. Gabon has the second
highest number of rigs offshore behind Nigeria in the entire sub
Saharan Africa. The new Hydrocarbons Code had cut down the delays in
granting licenses. The country also has incentivized companies to
move quickly into a drilling phase by reducing government charges
prior to the establishment of commercial exploitation of hydrocarbons.
The local content regulations for the hydrocarbon sector are also
progressively reviewed.
