Gabon's new petroleum code closer to passing as ministry reminds industry of licensing round deadline

DSC 1460At APPO Cape VII in Malabo, DGH, Gabon's hydrocarbons ministry, reminded delegates of the terms of the 12th licensing round, which was launched last year, as well as giving an update on the country's petroleum code

The Gabonese government has reviewed the code and it is now before the country's parliament for ratification.

A spokesperson for DGH said it is hoped that the new code is "more objective to the oil and gas industry".

Bids for the 12th licensing round close on 30 September - there are 35 blocks on offer for exploration, 12 conventional offshore and 23 deepwater offshore blocks. There are 2D and 3D seismic data available from DGH for interested parties. Delegates were told by the spokesperson that Gabon has good existing infrastructure including export terminals, five FPSOs and one refinery for the local market.

The bidding process includes requirements for a technical offer and an economic and financial offer, with local content as a major priority.

The fiscal terms include zero corporation tax and reductions in the government take for shallow and deepwater concessions. For shallow blocks, royalties are down from 13 per cent to 7 per cent and down from 9 per cent to 5 per cent for deepwater. State profit has been reduce, down from 55 per cent to 45 per cent for shallow blocks, and down from 50 per cent to 40 per cent for deepwater. The cost recover limit has been increased from 65 per cent to 70 per cent for shallow blocks and from 70 per cent to 75 per cent for deepwater. State participation is down from 20 per cent to 10 per cent and the NOC can acquire a maximum of 15 per cent at market conditions.

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