A petroliferous place - Gabon
The oil industry continues to dominate the industrial sector in Gabon providing around 40% of GDP. The statistics vary somewhat, but it is clear that Gabon is heavily dependent on its petroleum industry. There are many players, the global oil majors, the outsource oil field service organizations, drillers and marine services companies that are active there, both onshore and offshore. The Ogooue Delta complex is a proven hydrocarbon province, where over 2,000 MM bbl of oil and 900 Billion cubic feet (Bcf) of gas have been discovered since the 1960s.
The Oil sector and crude quality
The oil sector in Gabon is dominated by exploration and production making up 95% of the activity, the other 5% is invested in refining and research and development. There are five types of crude oil produced in Gabon, ranging from a medium to relatively heavy oil with a low level of sulfur. This crude is similar to the "Arab light". The principal types of crude oil currently produced are :
Mandji Blend produced by Elf Gabon and Perenco
Rabi Light (Elf Gabon)
Gamba crude blended with Rabi-Echira crude (Shell’s Rabi blend)
Lucina Blend produced by Perenco
Oguendjo/Breme Blend (Perenco in the South)
The State receives oil revenue on the basis of sources : taxes on oil company production, rental fees on exploration permits based on the area covered, and dividends paid by the oil companies.
Recent activity
The Etame field, a major source of crude, is a joint venture operated by Vaalco Energy and is in partnership with Addax, Sasol, Tullow Oil and other minority interests. Harvest Natural Resources has announced two offshore discoveries in 2011 which are in appraisal phase. Panoro Energy has struck oil, also offshore, following an extensive drilling campaign recently.
Exports
Oil exports are growing steadily due to the growth in investment from international oil and gas companies such as Total and Shell and many other medium-size explorers. Gabon can look forward to long-term relationships with these multi-nationals which have taken up 25-year agreements with the Government. The bulk of these exports are destined for the USA, France, Netherlands and UK. The only refinery in Gabon, part owned by Total, is run by the Société Gabonaise de Raffinerie (SOGARA) in Port-Gentil and only has a capacity of around 21,000 barrels per day. And it has incurred losses for the last five years. Gabon is likely to benefit from the supply problems in Libya during the next few years.
Gabon has a high income per capita compared to other African countries, almost four times that of most nations. Although the locals would say that the cost of living in Gabon is quite expensive, expatriates will find it fairly reasonable except for imported products and telecommunications services. Although Libreville is the capital, much of the activity in this sector is centered around Port-Gentil.
