Africa’s Potential in growing production: Gabon Oil Market

Gabon is Africa’s fourth largest oil producer. (in Sub-Saharan Africa.) With an output of around 220,000 barrels per day, dominated by international oil majors Total and Shell.

Production

Firstly, crude Oil Production in Gabon averaged 273.97 BBL/D/1K from 1994 until 2016. Reaching an all time high of 374 BBL/D/1K in August of 1995. And a record low of 205 BBL/D/1K in April of 2015. Secondly, crude Oil Production in Gabon remained unchanged. At 210 BBL/D/1K in March from 210 BBL/D/1K in February of 2016.

Also, production in Gabon comes from a portfolio of over 20 non-operated onshore and offshore fields.

As a result of near term cash flow optimization and decisions by the field operators. Due to the low oil price, reduced activity will continue across Tullow’s non-operated West Africa portfolio. Rather, there is flexibility. To increase capital investment in the medium term. To offset production decline in these mature assets, as market conditions improve.

Oil Reserves

In addition, both on land and offshore, Gabon possesses ample oil resources. In terms of authenticate recoverable reserves. While according to the Oil & Gas Journal (OGJ), Gabon had 2 billion barrels of proven oil reserves. Especially relevant, the end of 2012, Gabon was the fifth-largest oil producer in Sub-Saharan Africa. Due to its position behind Nigeria, Angola, Sudan & South Sudan, and Uganda. Most of Gabon’s oil fields are located in the Port-Gentil area and are both onshore and offshore. Therefore, Gabon’s oil production has been reduced by toward one-third from its peak of 370,000 barrels per day (bbl/d) in 1997. To 244,000 bbl/d in 2012.

Oil Consumption In Country

Averaging around 14,000 bbl/d , over the last decade, oil consumption in country has remained permanently low. Yet, consequently, more than 90 percent of output is exported (around 250,000 bbl/d on average) over the last decade.

Throughout the history, Gabon’s oil production has been concentrated in one large oil field and supported by several smaller fields. As a result, the largest field matured and production declined. In process, the other fields emerged and replaced dwindling production. Furthermore, dominant fields have included Gamba/Ivinga/Totou (1967-1973), Grondin Mandaros Area (1974-1988), and Rabi (1989-2010). Most of all the Rabi oil field, as Gabon’s major success, significantly boosted the country’s total output in the 1990s. It reached 217,000 bbl/d at its peak in 1997. Although Rabi is still one of Gabon’s largest producing fields, it has matured and production has gradually declined to about 23,000 bbl/d in 2010.

Same, since Rabi’s climb-down, a new large field has not yet cropped up, since recent exploration has yield only modest finds.

Therefore, country ranks third largest in sub-Saharan Africa, after Nigeria and Angola.

OPEC Membership

Hence, Gabon was a member of OPEC from 1975 to 1995.

Seems like it withdrew on the grounds that it was unfair for it to be charged the same membership fee as the larger producers but not to have equivalent voting rights.

These recent years over 90% of Gabon’s oil output has been exported, mainly to the USA.

In conclusion, as years went by, Gabon became OPEC’s member once again in 2016. In the april of 2016, Gabon officially sent the rejoining quest to OPEC. As having a substantial net export of crude, which OPEC rules as a state country needs to have, it became a part of OPEC’s ‘family’ for the 2^nd time.