Africa: Gabon

Aug. 2001 Vol. 222 No. 8 International Outlook AFRICA Gabon

Aug. 2001 Vol. 222 No. 8
International Outlook

AFRICA

Gabon

This country wants to boost its E&P activity to levels commensurate with the rest of West Africa. To attract investors, and increase reserves and production, Gabon revised its model PSA and expanded the number of exploration permits issued. In the ninth licensing round that ended last January, Gabon offered 27 blocks; 13 onshore, five in shallow water and nine in deep water.

Exploration. Shell Gabon last December signed a PSA for the Douka Marin and Panga Marin blocks. Meanwhile, Elf Gabon (TotalFinaElf) has turned increasingly to deepwater exploration, signing for the Olonga Marin tract in April 2001. The firm has begun drilling the Astrid and Anton blocks.

Pan African Energy signed a deal in February 2001 to reactivate Remboue field. Initial production should begin in third-quarter 2001 and reach 1,800 bpd by mid-2002. Last August, Triton Energy acquired a 38% share in the Tolo and Otiti blocks. Tolo A will be drilled in 5,400 ft of water this year.

Burlington Resources holds a 25% stake in three Agip-operated blocks offshore. A fast-track, six-well exploration program is planned up to 2003. Meanwhile, Vaalco Energy acquired Western Atlas Afrique’s 65% interest in the Etame block offshore, home to a 3,700-bpd oil discovery. South Africa’s Soekor E & P acquired 15% of the shallow-to-deepwater Akori block operated by Elf Gabon (30%).

Drilling / development. There were 24 wells drilled last year, down 37% from 1999. This year, 30 wells are expected. King Resources acquired Nescor Energy last February and took over the PSA agreement for Salsich Permit G4-187 onshore. Salsich may hold 80 million bbl of oil. Development could begin this year.

Production. Gabon produced 335,000 bopd last year, down 4.5% from 1999’s level. Yet, proven oil reserves remain around 2.5 billion bbl, up from 1.3 billion bbl in 1996. Even this short-term increase does not temper the Gabonese government’s concerns about a long-term trend of diminishing reserves. Marathon announced the start of production at Tchatamba West field, currently producing 6,000 bopd.