A dedicated country spotlight taking place during the African Energy Week 2023 conference offers stakeholders unique insight into the country’s investment potential.
With an estimated 3.68 billion barrels of oil reserves, 1.2 trillion cubic feet of natural gas reserves and the implementation of investor-friendly fiscal terms, Gabon’s oil industry stands out as one of the most competitive and attractive in Africa. At African Energy Week (AEW) – taking place 16-20 October in Cape Town – Gabon’s energy sector will take stage during an Invest in Gabon Energies country spotlight session. The session will showcase the country’s abundant resources and offer an opportunity for investors to tap into a lucrative market with significant growth potential.
One of the key factors that makes Gabon an enticing prospect for investors is its deep offshore assets. As Africa’s sixth largest oil producer and one of the continent’s fastest developing energy markets, Gabon boasts significant untapped potential in its offshore oil reserves, and is attracting exploration companies seeking to capitalize on these resources. The North Basin area in particular is believed to harbor game-changing pre-salt reserves. This untapped frontier presents a lucrative opportunity for investors. To tap into its potential, the government introduced the new Hydrocarbons Code in 2019, aiming to provide international companies with improved returns on their exploration and production investments.
What’s more, Gabon offers redevelopment opportunities for mature and marginal oilfields. By leveraging advanced technologies and innovative techniques, investors can unlock previously untapped reserves and maximize production efficiency in existing fields. This approach not only enhances profitability but also contributes to the country’s overall oil production output.
Gabon is also focused on gas monetization through the implementation of the Gas Master Plan. This strategic initiative aims to reduce gas flaring, a common practice in the energy sector, and ensure energy security. By monetizing gas resources, Gabon can diversify its energy mix, reduce greenhouse gas emissions and generate additional revenue streams. This presents an attractive strategy for investors looking to participate in the gas sector and contribute to sustainable energy development.
Additionally, the country is actively prioritizing enhanced electrification with the visionary Cap de Lopez gas-fired power facility. This project aims to boost electricity generation capacity, providing improved access to reliable and affordable power for the country’s citizens. By bridging the electricity gap, the facility will not only enhance energy accessibility but also stimulate various industries, fostering economic growth. Investing in this project is Anglo-Swiss company Perenco, who recently made a final investment decision on the Cap de Lopez Liquefied Natural Gas (LNG) facility, valued at $1 billion dollars. Operational in 2026, it will produce 700,000 tons of LNG and 20,000 tons of butane, bolstering Gabon’s energy capabilities. Perenco’s ongoing construction of the Liquefied Petroleum Gas plant in Batanga will further contribute with 15,000 additional tons of butane production later this year. This presents an attractive opportunity for other investors and private companies looking at investing in projects of this nature.
Embracing a forward-thinking approach, the country aims to attract private capital and foster active participation across various sectors, including the hydrocarbons value chain and diversified industries through its 2025 Emerging Gabon Plan. The plan aims to diversify the economy beyond the energy sector, focusing on sectors such as agriculture, mining and tourism. Private investors can actively participate in this plan, leveraging their expertise and resources to foster economic diversification, create employment opportunities and contribute to sustainable development.
Recognizing the importance of developing critical climate-resilient infrastructure, the country aims to build infrastructure that can withstand the challenges posed by climate change, ensuring the long-term sustainability and resilience of its energy sector. Investors who prioritize sustainable and climate-resilient projects will find Gabon’s commitment to such infrastructure development appealing, as it aligns with global sustainability goals and reduces investment risks associated with climate change impacts.
“Gabon’s energy prospects are incredibly promising, offering a wealth of opportunities for investors. With its abundant oil reserves, strategic geographical location, and commitment to creating a favorable investment climate, Gabon is an ideal destination for those seeking to capitalize on Africa’s thriving energy sector. By investing in Gabon, companies and investors can tap into a profitable market, contribute to the country’s economic growth, and participate in a sustainable and just energy transition,” states NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).
Gabon’s country spotlight at AEW 2023 will showcase its energy sector’s investment potential. With frontier exploration, oilfield redevelopment, gas monetization, enhanced electrification, private capital attraction and climate-resilient infrastructure, Gabon offers lucrative opportunities for energy investors.
AEW is the AEC’s interactive exhibition and networking event that seeks to unite African energy stakeholders, drive industry growth and development, and promote Africa as the destination for African-focused events. For more information, visit www.aecweek.com
