The Gabonese Republic issued new guidelines on two July aimed at speeding up the award of deep-offshore licences, a zone deemed crucial to reverse a production slide from three hundred sixty-five thousand barrels per day in nineteen ninety-six to about two hundred thousand barrels per day in twenty-twenty-three. The Gabon Ministry of Petroleum said seventy-two % of its maritime domain remains unexplored, offering significant scope for fresh discoveries. Authorities are banking on the Hydrocarbons Code adopted in twenty-nineteen, which revises taxation and production shares, to attract fresh capital. Agence Ecofin reported on four July that several companies are already showing interest in the upcoming bid round.
More attractive contractual terms
Changes introduced by the law strengthen fiscal incentives, including lower tax rates and the possibility of recovering costs over a shorter period. BW Energy, an independent firm based in Oslo, said it has stepped up three-dimensional seismic acquisition on its permits west of the Ogooué delta. Panoro Energy, another producer listed in London, has also increased its exploration budget, citing a contractual environment it considers more competitive. GlobalData analysts estimate that deep-water development costs in the Gulf of Guinea remain below forty dollars per barrel, supporting the viability of new projects despite price volatility.
Financing comes mainly from regional banks willing to syndicate loans secured by future production. According to the Bank of Central African States, disbursements to the energy sector rose by twenty-two % in the first half. Junior companies benefit from an accelerated depreciation mechanism introduced by the Ministry of Finance for subsea equipment. This measure halves the tax burden during the first five years of operation, an advantage viewed as decisive for deep-water drilling.
Downstream infrastructure modernisation
In parallel, Libreville aims to secure more downstream revenue by modernising Société gabonaise de raffinage, whose processing capacity will reach thirty-five thousand barrels daily after works. The Port-Gentil refinery, partially idle since twenty-twenty-three, is scheduled to restart in the first half of twenty-twenty-six under the official timetable. The national plan also includes a Floating Liquefied Natural Gas (FLNG) unit at Cap Lopez to capture associated gas and cut flaring by twenty-twenty-eight. The Ministry of Hydrocarbons believes the addition could triple gas revenue compared with the twenty-twenty-three baseline.
The revival nevertheless hinges on the swift signing of production-sharing contracts, which still require approval from the Directorate-General of Hydrocarbons and Parliament. Financial actors are monitoring Gabon’s public debt, rated speculative by several agencies, which could raise capital costs. Ongoing talks with the African Development Bank seek to secure hedging mechanisms against price swings, a key condition for attracting majors. Without such guarantees, operators could favour neighbouring countries offering similar contractual regimes but higher sovereign ratings.
Political stability and discovery prospects
The country is also betting on political stability regained after the twenty-twenty-four institutional transition to reassure foreign investors. The Transitional Military Council has maintained the existing legal framework, avoiding any licence freeze or unilateral contract revision. This continuity is deemed critical to finance the regional seismic campaign planned over fifteen thousand square kilometres by the end of next year. Advisers at consultancy Wood Mackenzie note that Gabon now offers one of the shortest approval times in the region, at under six months between block award and final ratification.
Figures compiled by the Organization of the Petroleum Exporting Countries (OPEC) show Gabon’s share of the African quota fell to one point nine % in twenty-twenty-four from three % a decade earlier. Authorities estimate that a single discovery well in deep offshore can add up to fifteen thousand barrels daily to national capacity. A recent ministerial survey counts twenty-one prospects drilled since twenty-nineteen, six of which are considered commercial. GlobalData notes that despite the historical decline, seventy-two % of Gabon’s offshore potential remains to be found.
