Professional Documents
Culture Documents
Country Profile of
Conventional and Renewable Energies:
Gabonese Republic
Last updated on 23 Oct 2006
Prepared by
Maria-Evangelia Kaninia
Intern from August to …, 2006
for the
1 Executive Summary
The economy of Gabon has for a long time been solely based on the oil bonanza, though the recent
decline in production (in spite of the efforts to reverse it with further exploration activities) will eventually oblige
the government to diversify the economy. Efforts to develop the natural gas fields (associated with the oil
fields) are also undertaken.
The vast majority of the almost 11,000ktoe of crude oil extracted in 2004 were exported, leaving
460ktoe of oil products for domestic consumption. In terms of final energy, the largest share is occupied by
biomass (~65%), although in a lesser extent than in other sub-Saharan countries.
The electricity sector is privatised. The generation of electricity is shared between hydro resources and
hydrocarbons, with the former accounting for 60% of the production in 2004.
It is reasonable to assume that the country has further RE potential (mainly hydro and solar energy).
Apparently, the priorities of the country focus on the salvation of the dwindling oil sector, since no RE-related
projects have been located.
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2.1.2 Population
Total population: approximately 1.4 million ([CIA], July 2006 estimate)
Growth rate:2.1% (same source);
Gabon ranks 123d in terms of human development indices ([HDR]); this placement is considerably
higher than that of the neighbouring countries
12
11
10
9
8
7
6
5
4
3
2
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
1
Operated by Shell; estimated reserves amount to 440 million bbl; production is at 150,000 bpd ([MBa]), although
[EIAa] provides a probably more recent estimate of the daily production at 55,000bbl/d.
2
The graph on page 3 of [RK], although it is dated 2002, indicates the steep decline in production that is to be
expected unless new fields come on-stream.
3
[MBa] reports that “at the beginning of 2005 the IEA announced that without the discovery of new fields current
production will deplete Gabon’s oil reserves by 2012”.
4
Using a conversion factor of 49.8 (from bbl/d to ktoe).
8/15
5
The major shareholders are Elf Aquitaine (predecessor of Total) (58.3%) and the state (25%).
6
According to which approximately 20% of the production is rendered to the government, as deduced from
[TOTd].
7
An offspring of Shell, which holds 75%.
9/15
o Hess Corporation has been active in Gabon since 1989 and holds interests in eight onshore and
offshore permits (including 10% of the Rabi-Kounga field, [TOTb]). Production in Gabon averaged
12,000bbl/d in 2004 (5.5% of the total production). Further future wells are planned ([HE04]).
o Tullow ([TUL]) has interests in 15 licenses in Gabon including eight producing fields. Oil production
averaged 17,500bbl/d during 2005. The company is involved in development, appraisal and work-over
activities, most notably onshore at Niungo (Tullow 40%), and offshore at Etame (Tullow 7.5%) where a
successful development well was drilled and brought on stream. These activities resulted both in
reversing a previously declining production trend and in providing additional reserves in the existing
fields. Tullow is the operator of the Kiarsseny Marin Property, which is located offshore in the Port
Gentil Basin.
o Perenco operates in Gabon since 1992, and currently (year to which this refers is not clarified)
produces 50,000 to 60,000bbl/d from numerous onshore and offshore fields. During the last five years
the company has implemented an ambitious development program, resulting in a significant increase in
reserves (see [PER] for a list and map of the fields and exploration permits).
o Vaalco (operator, approximately 30%), Addax Petroleum, and Sasol (approximately 30%, [SASa]) are
involved in the Etame offshore field (discovered in 1998; output came online in 2002; see Figure 9).
Current output at Etame field is approximately 18,000bbl/d ([EIAa], confirmed by [VAA], though [SASb]
mentions that production is increased to 22,000bbl/d due to an additional well). In the summer of 2005,
the International Finance Corporation (IFC) approved a revolving credit facility of $30 million for Vaalco
to continue its oil exploration, development and production in the Etame block ([IFCa]). Vaalco also
holds interests on the Avouma offshore field, which is currently in development phase, while the first oil
is expected to come on-stream in December 2006 ([VAA]). The Ebouri field is currently under
exploration. The location of the fields is presented in Figure 9.
o Sasol also acquired interests to the Dussafu field in 2003 (onshore, on the border to Congo, estimated
to contain 22-70m bbl). A “technical evaluation contract” was signed for this field ([IZF]).
o Addax Petroleum purchased the interests of Pan-Ocean Energy in Gabon in July 2006 for $1.4 billion.
The acquisition makes Addax the largest producer in Gabon, with total production of more than
100,000bbl/d ([EIAa]). The portfolio of properties that Pan-Ocean had assembled combines both
offshore and onshore assets, and importantly, represents a well balanced portfolio consisting of: current
production; proven, probable and possible reserves (264m bbl in total); many near-term development
opportunities and significant exploration potential ([ADX]). Before this purchase, Addax had acquired (in
2004) 42.5% of a Production Sharing Contract (PSC) for the Kiarsseny Property (see Figure 10).
o First Africa Oil completed, in September 2006, initial drilling in the offshore East Orovinyare oilfield
(unrisked reserves amount to 421m bbl). The company expects to have the field output online by the
third quarter of 2007 (the company site [FAOa] mentions the 4th quarter of 2006 as the commencement
date). Initial production is expected at over 7,000bbl/d ([EIAa]; for technical description of the field, see
[FAOa]). First Africa Oil also has interests in the Epaemeno Onshore field (see [FAOb]).
o An Indian consortium (which includes Marvis, Oil India, Indian Oil Corporation and the Oil and Natural
Gas Corporation) has signed exploration contracts with Perenco and the government ([EIAa]).
o Maurel et Prom finalised, in February 2005, the acquisition of the South African company Rockover Oil
& Gas Ltd, which had 27m bbl of proven plus probable and 30m bbl possible reserves, in a deal worth
€54.3m. This transaction means the company owns 100% of four onshore permits (Kari, M’Bindji
(which contains the majority of reserves), Ofoubou and MT2000) and 50% of the Banio permit
([MEPa]). The company will commence production at 12,000bbl/d at the end of 2007 (see [MEPb]).
o A new licensing round is planned for late 2006 ([GEN]) with a view to focusing on Gabon’s unexplored
deep and ultra-deep waters.
Midstream sector: The Sogara refinery (Société Gabonaise de Raffinerie) - in operation since 1967 - at
Port Gentil is the refining plant. It is jointly owned by the Government (25%) and a number of international
firms, led by Total (44%) and Shell (17%). According to OGJ, the refinery had 17,300 bbl/d of crude distillation
capacity as of January 2006 ([EIAa]), although the nominal capacity is 21,000 ([MBb]). In 2004, though,
according to [IEA] data, the input quantity of crude oil was 14,700bbl/d. Inland demand has always been
covered by the refining capacity, therefore Gabon is a net exporter of oil products (4,400bbl/d, [IEA], 2004),
10/15
although it does import products in order to achieve the demanded supply mix. Oil products are shipped by sea
to the capital.
Downstream sector: The distribution market is privatised. The major players are, in order of magnitude:
Total, Mobil Oil, Pizo and Shell ([IZF]).
Sector organisation: The Oil Ministry8 superintends all regulation in the oil industry. The national oil
company, Société Nationale Petrolière Gabonaise (SNPG or Petrogab) is not actively involved in development
projects9. Ownership of oil and gas rights is vested in the State. Companies provide services on behalf of the
State and finance hydrocarbon exploration and exploitation activities. Exploration and production companies
are licensed under the Exploration and Production Contract (ESPC) established by Law No 14/82 in January
1983. Gabon was a member of OPEC until 1996, when it left citing the high annual dues required by the
organisation as its reason ([MBa]). The tax system within Gabon encourages foreign investment; providing, for
example, for tax-exemptions for certain exploration activities. Gabon also strives towards greater transparency
within the oil industry. In addition, Gabon joined the Extractive Industries Transparency Initiative (EITI) to
increase transparency in oil and mining payments from companies to governments ([EIAa]).
Refinery output Imports - Exports Consumption
2003, [EIAb] 000 bbl/d ktoe % 000 bbl/d ktoe 000 bbl/d ktoe %
Gasoline 1.61 80.2 11.0 -0.49 -24.4 1.00 49.8 7.9
Jet fuel 1.17 58.3 8.0 0.02 1.0 1.43 71.2 11.4
Kerosene 0.44 21.9 3.0 0.17 8.5 0.53 26.4 4.2
Distillate 4.29 213.6 29.2 0.51 25.4 4.91 244.5 39.0
Residual 5.70 283.9 38.8 -3.80 -189.2 1.96 97.6 15.6
LPG 0.31 15.4 2.1 0.35 17.4 0.66 32.9 5.2
Unspecified 1.18 58.8 8.0 0.95 47.3 2.10 104.6 16.7
Total 14.70 732.1 100.0 -2.29 -114.0 12.59 627.0 100.0
Table 2 Shares of petroleum products, by type, in refinery output, imports and total consumption, 200310
source: [EIAb]
8
Apparently, this appellation is short for the “Ministère des Mines, de l’Energie, du Pétrole et des Ressources
hydrauliques”.
9
According to [PRF], a document published by an organisation politically opposed to the government, this
company does not exist any more, having transferred the assets it owned to the state (page 8). [IZF] confirms that the
state company was dissolved in 1993.
10
It is reasonable to assume that the ratio between the types of products remained approximately the same for
2004.
11
Corresponds to the dry production entry of Table 3.
11/15
Projects: In December 2005, Perenco signed a natural gas contract with SEEG. Under the contract
terms, Perenco will supply natural gas to SEEG power plants in Libreville and Port Gentil. Proposed pipelines
will be built by Perenco in order to transport natural gas from company fields to the power plants ([EIAa]).
2.2.1.3 Electricity
According to [EIAc], the electricity generation capacity in 2004 consisted of 244MW (59%) of thermal
and 170MW (41%) of hydro plants:
Electricity generation capacity by type, MW, [EIAc]
450
400
350
300
250 hydro
200 thermal
150
100
50
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
1,600
1,400
1,200
1,000
hydro
800
thermal
600
400
200
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
3.1 Hydro
Gabon has approximately 6,000 MW of undeveloped hydroelectric potential ([MBc]). Apart from this
vague reference, no information on the expansion of the generating capacity has been found.
3.2 Solar
It is reasonably expected that Gabon has potential to develop micro solar projects, as is the case in
other (even with far less financial capabilities). However, no leads to such projects were found.
12
The privatisation was the first in sub-Saharan Africa with a commitment from the private operator to future
investment in order to upgrade and modernize equipment ([MBc]).
13/15
550
500
450
400
350
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Figure 8 Wood fuel production, source: [WRI], assumed average wood density 0.5t/cubic meter
4 Sources
[EIU] Economist Intelligence Unit, http://www.eiu.com/, Country Profile and Data
[CIA] World Factbook, https://www.cia.gov/cia/publications/factbook/geos/gb.html
[HE04] Hess Corporation Exploration and Production, http://www.hess.com/ep/west_africa.htm#gabon
[EIAa] Country Analysis Brief, updated in Oct-06, http://www.eia.doe.gov/emeu/cabs/Gabon/Full.html
[EIAb] Energy balance table for 2003, http://www.eia.doe.gov/emeu/world/country/cntry_GB.html
[EIAc] International data time series, http://www.eia.doe.gov/emeu/international/contents.html
[MBa] Mbendi portal on Africa, Gabon Oil Sector, http://www.mbendi.co.za/, link
[MBb] same, Gabon oil refining, link
[MBc] same, Gabon Electrical Power, link
[MBd] same, Gabon Crude Petroleum and Natural Gas Extraction, link
[TOTa] Total Gabon Production Statistics, http://www.total-gabon.com/stat/production.htm
[TOTb] “Elf Gabon signs Extension of Rabi-Kounga License with Gabonese Republic”, Apr-23 2003,
http://www.total.com/, link
[TOTc] “Total Gabon: financial results for the first half of 2006”, Sep-12 2006, http://www.total.com/, link
[TOTd] “Total Gabon: financial results for fiscal year 2005”, Mar-21 2006, link
[PER] Perenco Gabon, http://www.perenco.com/, link
[TUL] Tullow Oil, http://www.tullowoil.com/, link
[IEA] Energy Balances of non-OECD countries, 2006
[RK] Presentation of the Rabi-Kounga oil-field in Gabon, Nov-2005, link
[GEN] Portal on the Energy sector in Gabon, http://www.gabonenergy.com/
[WRI] http://earthtrends.wri.org/, World Resources Information, Earthtrends
[IRI] Territorial dispute between Gabon and Equatorial Guinea, Feb-28 2006, http://www.irinnews.org/,
link
[VAA] Vaalco Energy, Properties, http://www.vaalco.com/
[IFCa] International Finance Corporation, “IFC Invests $30 Million in VAALCO Gabon”,
http://www.ifc.org, Jun-13 2005, link
[IFCb] link
[SASa] Sasol Oil, http://www.sasol.com/, Feb-04 2004, link
[SASb] Oct-6 2004, link
[ADX] Addax Petroleum, http://www.addaxpetroleum.com/operations/gabon
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[FAOa] First Africa Oil, Gabon Epaemeno Onshore field, http://www.firstafricaoil.com/project1.asp
[FAOb] First Africa Oil, Gabon Epaemeno Onshore field, http://www.firstafricaoil.com/project2.asp
[MEPa] Maurel et Prom, Gabon activities, http://www.maureletprom.com, link
[MEPb] Résultats du 1er semestre 2006, Oct-19 2006, link
[PRF] Pétrole et renaissance économique au Gabon, Rapport de la Commission Economique du BDP-
Gabon Nouveau, http://www.bdpgabon.org/docs/petrogab_rapport_final.pdf
[IZF] “L’évolution du secteur pétrolier”, http://www.izf.net, link
[VEO] Veolia Water, http://www.veoliawater.com/presence/africa/gabon.htm
5 Annex