Oil in Gabon: Marcel Abeke realizes two strategic CEPPs

A Revolution in deep offshore

In a major step forward for the African oil sector, Gabon has just reached a decisive step with the signing of two strategic Exploitation and Production Sharing Contracts (CEPP). This historic initiative, orchestrated under the careful supervision of Minister Marcel Abeke, represents a colossal investment of 60 billion FCFA and propels the country into the promising era of ultra-deepwater. This development marks a decisive turning point in the country's oil history, opening new perspectives for the exploitation of deep-water resources.

Oil: post-stagnation period

The Gabonese oil sector, after going through a period of significant stagnation, is today experiencing a spectacular revival. The period preceding the political transition of August 2023 was characterized by a certain inertia, with the last major CEPP dating back to August 2, 2019. At that time, the Gabonese state had concluded two agreements with the Malaysian company Petronas for the F12 blocks. and F13, respectively named “Yitu” and “Meboun”. This long waiting period was mainly explained by a hydrocarbon code which struggled to attract international investors, thus slowing down the development of the sector.

The year 2021 was marked by only two minor contractual modifications: on the one hand, the strategic takeover of the Cap Lopez terminal by Perenco Gabon, and on the other hand, a transfer of interests representing 37.5% of shares of Total Gabon to Perenco Oil and Gas Gabon SA in the Hylia II block. These adjustments, although necessary, did not constitute real progress in the exploration of new oil areas.

A historic renaissance of the Gabonese oil sector

The historic signing on October 30, 2024 of the CEPPs for the NIOSI MARIN G4-265 and GUDUMA MARIN G4-264 blocks marks a true technological revolution in the sector. These exploration zones, located at impressive depths varying between 1200 and 2500 meters, represent an unprecedented technical challenge in the Gabonese basin. The consortium selected to take on this challenge brings together exceptional complementary expertise. BW Energy brings its in-depth expertise in advanced subsea technologies. VAALCO Gabon leverages its in-depth knowledge of the local sedimentary basin, while Panoro Energy strengthens the consortium's overall technical capacity.

Preliminary geological studies carried out on these blocks revealed particularly promising results. The identified structures show remarkable similarities with the prolific Brazilian pre-salt deposits, suggesting considerable potential in Upper Cretaceous formations. This discovery opens up exciting prospects for Gabonese oil exploitation, suggesting the presence of significant, previously unexploited reserves.

The exploration program is based on a latest generation technological arsenal. State-of-the-art drillships, equipped with extraordinarily precise positioning systems, will be deployed to confront the complex ocean weather conditions of the Gulf of Guinea. Operations monitoring will benefit from a revolutionary integrated digital approach, enabling continuous performance optimization and a substantial reduction in operational costs.

Promising economic prospects

The modernization of the regulatory framework, initiated under the leadership of the Transition authorities, plays a crucial role in this renaissance. The new CEPPs incorporate an innovative approach combining attractive tax breaks during the exploration phase and a sophisticated progressive royalty system. This modernization has already started to bear fruit, as evidenced by the significant 8.9% increase in oil production observed in the first half of 2024.

The impact of these new contracts goes far beyond the strict framework of the oil sector. The development plan provides for the creation of a complete ecosystem around offshore activities, including an ambitious training and local skills development program. The objective is to create a true center of technical excellence, capable of supporting the most complex operations while promoting the emergence of high-level local expertise.

Production forecasts are particularly encouraging, with additional potential estimated at 60,000 barrels per day by 2027. The cutting-edge technologies that will be deployed in these areas promise an exceptional recovery rate, estimated at more than 45% of reserves. in place, a remarkable figure for deep water operations.

Gabon, future regional oil leader

The environmental aspect has not been neglected in these new contracts. Strict marine environmental protection measures have been integrated, with rigorous monitoring and rapid response protocols. The operators are committed to using international best practices in environmental protection, demonstrating their commitment to sustainable development of the sector.

This profound transformation of the Gabonese oil sector opens the way to a promising future where the exploitation of resources becomes a real lever of economic and social development for the country. Gabon is now positioned as a major player in the African oil industry, succeeding in combining technical excellence, environmental responsibility and sustainable social development.

The next few years promise to be crucial for the Gabonese oil sector. The ambitious exploration program, supported by cutting-edge technologies and a modernized regulatory framework, portends a substantial increase in the country's proven reserves. This development significantly strengthens Gabon's position as a key player in the Gulf of Guinea, paving the way for a new era of oil prosperity that will benefit the entire national economy.

@DworaczekBendom