Gabon Outlines Proposed Petroleum Code Reforms to Attract Upstream Investment

Gabon has outlined proposed fiscal and regulatory reforms aimed at attracting investment in deepwater and ultra-deepwater oil and gas projects, with Wood Mackenzie recommending changes to improve investor returns and accelerate project development. The proposals were presented during the Invest in Gabon Energies Investor Breakfast at African Energy Week (AEW) 2026 in Cape Town.

David Parkinson, Vice President, Upstream Consulting at Wood Mackenzie, presented the recommendations following four to five months of work with Gabon's Ministry of Oil and Gas and industry stakeholders. The review focused on making the country's petroleum framework more competitive while balancing investor returns with government revenues.

"The overall ambition here was ensuring that the code is as investable and as attractive as possible," Parkinson said.

Wood Mackenzie's analysis identified constraints on early project cash flow and a fiscal structure in which the government's share depends on production levels rather than project profitability. Its recommendations include introducing an R-factor mechanism under production-sharing contracts, allowing revenue-sharing arrangements to adjust as companies recover costs and projects become more profitable.

For one ultra-deepwater scenario, the firm recommended retaining the 19% royalty while replacing the production-based government share with an R-factor mechanism and a minimum government share of 20%. The proposals also address licensing procedures and administrative barriers, with the recommendations remaining subject to government approval.

Alongside the proposed reforms, Gabon is promoting its exploration potential. Freedy Nzue Nzue, Senior Adviser at the Ministry of Oil and Gas, said 26 blocks remain available across onshore and shallow-water areas, including acreage with existing discoveries and prospects requiring further drilling. Approximately 72% of Gabon's sedimentary basin remains open for exploration.

Despite approximately six decades of oil production, exploration and development have covered only part of Gabon's sedimentary basin, leaving substantial opportunities across onshore, shallow-water and deepwater acreage. In southern Gabon, sediment deposits transported by the Congo River offer further exploration potential, while sedimentary systems in the north and the Ogooué River basin in central Gabon present additional prospects.

Gabon has also stepped up engagement with international operators, signing a memorandum of understanding with Shell in June 2026 to assess deepwater and ultra-deepwater opportunities. The government has pursued discussions with bp and ExxonMobil as it seeks to attract new capital to its offshore sector.

Beyond major international operators, Gabon is targeting independent oil companies, particularly African players interested in developing marginal fields and smaller discoveries that may fall below the investment thresholds of larger producers.

The government is prepared to consider regulatory adjustments to facilitate independent participation and reduce barriers to exploration and development. Partnerships with Gabonese state-owned companies and domestic operators could also provide opportunities for new entrants to access acreage and advance projects.

"We really, really want to work with all the independent companies in Africa, especially," Nzue Nzue emphasized.

With fiscal reforms under consideration and substantial acreage available, Gabon is seeking to translate renewed international interest into exploration commitments and upstream investment.