Oil is the backbone of Gabon’s economy, accounting for half of the state revenues and around 80% of its export earnings. It has become one of the more established hydrocarbons producers in the Gulf of Guinea. Gabon’s relatively light, sweet crude from accessible onshore deposits, and potential in deep offshore blocks have attracted foreign investors. The country ‘s leading hydrocarbons producers are Total Gabon, Shell Gabon, and Perenco Gabon.
Gabon plans to increase its crude oil production by 50 percent by 2020/2021.The government proposes to stabilize oil production at around 250,000 barrels per day (bpd) in the short term – 20,000 bpd more than current levels – and to double it by 2025.The year 2019 has seen robust activity in the sector. These included, Gabon’s 12th Shallow and Deep Water Licensing Round which is still underway, introduction of the revised hydrocarbon code and Petronas’s announcement of two exploration permits.
In line with the government plan to boost output, Vaalco Energy, US hydrocarbon exploration company will start an offshore drilling campaign next month after completing a successful full-field maintenance shut down at four of Vaalco’s platforms in the Central African nation. The five-well drilling campaign will start with the Etame 9P appraisal well followed by the 9H development well from the Etame platform. Vaalco’sestimated net drilling budget is around $20 million to $25 million this year and $5 million to $10 million in 2020.The other foreign operators withproducing fields in Gabon, include UK-based Tullow Oil, France’s Maurel & Prom, and China’s Addax Petroleum.
