Gabon is currently witnessing a resurgence in its oil and gas sector, catalyzed by a recent offshore discovery and a series of production start-ups led by key industry players. With a forecast production capacity of 200,000 barrels per day (bpd) – leveraging its estimated 2 billion barrels of oil reserves – the nation is on track to see substantial sector growth. Moreover, Gabon is diversifying its upstream portfolio through initiatives like the Gas Master Plan, which aims to enhance domestic gas infrastructure and tap into growing LNG and LPG markets.
Recent Discoveries and Production Increases
A recent milestone in Gabon’s upstream resurgence is the offshore discovery made by BW Energy and Panoro Energy at the DHBSM-2P pilot well on the south extension of the Hibiscus South field. The discovery, with estimated gross recoverable reserves of 5-6 million barrels of oil and approximately 14 million barrels of oil in place, underscores Gabon’s untapped hydrocarbon potential within existing assets. Additionally, BW Energy’s recent start-up of the DHBSM-1H well in the Hibiscus South field exemplifies Gabon’s oil production capabilities, with output stabilizing at around 5,000-6,000 bpd and an expected recovery of 6.6 million barrels of the 22 million barrels of oil in place.
Meanwhile, independent oil and gas company Perenco initiated appraisal drilling near its Hylia South West discovery last February to identify additional reservoirs and estimate oil volumes, ranging from 20 to 100 million barrels. Production at the field commenced last October, yielding approximately 6,000 bpd.
Independent energy company VAALCO is continuing to drive production gains in Gabon, encouraging incremental exploration and the development of marginal fields, as well as breathing new life into mature assets. The company was granted a 10-year extension for its Etame Marin exclusive exploitation areas in 2018, enabling future investments and the development of potential hydrocarbon resources within these areas. Last August, the Etame field completed a lifting of approximately 641,000 barrels of oil.
Bold Frontier Exploration
Gabon is not only focusing on mature fields, but also venturing into frontier exploration. Chinese oil firm CNOOC launched wildcat drilling on Blocks BC-9 and BCD-10 in early-2023, representing a bold step into uncharted territories. The potential success of the Tigre-1 frontier probe, with a recoverable resource potential of up to 1.4 billion barrels, could double Gabon’s oil output while de-risking future deepwater exploration. These exploratory ventures have the potential to reshape Gabon’s oil trajectory, attracting additional investments and enhancing the country’s upstream portfolio.
Gas Master Plan: A Strategic Shift
Gabon’s Gas Master Plan represents a pivotal shift towards natural gas as a cornerstone of the country’s economic diversification. Historically dominated by oil, Gabon’s economy is set to embrace natural gas as a key pillar of energy security and industrialization. The Gas Master Plan aims to reduce flaring, develop domestic gas infrastructure and capitalize on emerging LNG and LPG markets, epitomizing Gabon’s strategic vision for its energy future.
Central to this plan is the reduction of gas flaring and creation of downstream industries. Gabon’s natural gas reserves – estimated at 1.2 trillion cubic feet and primarily in the form of associated gas – are expected to fuel various gas-based industries and a comprehensive gas network. Key initiatives include Perenco’s $1-billion Cap Lopez LNG terminal, slated to produce 700,000 tons of LNG and 25,000 tons of LPG annually upon its completion in 2026, as well as the company’s LPG plant in Batanga, which began operations last December with a target production of 15,000 tons of LPG annually.
Gabon is also increasing its refining capacity, with plans to expand SOGARA – the country’s sole refinery – from annually processing 1.2 million to 1.5 million tons of crude oil. This expansion could enable Gabon to achieve self-sufficiency in refined petroleum products by 2030.
Beyond immediate production gains, Gabon’s recent offshore discoveries and production start-ups are set to invigorate investor confidence, attract substantial capital inflows and cultivate an environment conducive to sustained growth. Expanded oil reserves will not only enhance Gabon’s significance on the global energy stage, but also contribute towards achieving energy security and new revenues for the country.
