Sosthène Nguema Nguema, Gabon’s recently appointed Minister of Oil and Gas, has launched a strong drive to attract investment in deepwater oil and gas exploration. The minister was appointed by President Brice Clotaire Oligui Nguema on May 5, following the formation of the first government of Gabon’s Fifth Republic.

With 72% of Gabon’s deepwater acreage still unexplored, the country plans to revise its current petroleum laws and offer new incentives to counter production decline in Central and West Africa, says the African Energy Chamber (AEC).

The AEC has welcomed this strategy and commended the government’s more assertive approach in managing and commercialising its legacy assets, such as the takeover of Carlyle-owned Assala Energy’s onshore assets by the state-run Gabon Oil Company (GOC). According to the AEC, the shift to deepwater exploration presents valuable opportunities for foreign investors and could position Gabon as a key regional hub for refined oil products.

“The AEC believes that ongoing regulatory reforms, a focus on deepwater investments and greater collaboration with international oil companies (IOC) will transform Gabon’s oil and gas industry, supporting greater production and the development of a new hub for refined product distribution in Central Africa,” the AEC said in a press statement. “We believe that Gabon has a potential to produce close to 1 million barrels of oil per day.”

Gabon currently aims to maintain production above 220,000 barrels per day (bpd) in the short to medium term and expects that the shift to offshore exploration will result in new discoveries to help achieve this. According to the AEC, Gabon has over two billion barrels of proven oil reserves and a significant gas potential.

The country’s Hydrocarbons Code, introduced in 2019, already includes investor-friendly terms like revised production sharing contracts (PSCs) and improved profitability conditions for foreign operators. The new government is planning further updates to make Gabon’s energy sector even more competitive.

“Regulatory reform represents a cornerstone of the country’s exploration strategy, with potential improvements to petroleum legislation set to strengthen the competitiveness of investing in Gabon’s deepwater blocks,” said the AEC.

Several major exploration and production (E&P) companies are already active in Gabon’s offshore blocks. In 2024, Oslo-based independent E&P firm BW Energy and its American partner VAALCO Energy signed PSCs for the Niosi Marin and Guduma Marin blocks, committing to drill one well and conduct a 3D seismic survey over an eight-year period.

In partnership with GOC and another Norwegian E&P company Panoro Energy, BW Energy (operator) also holds a stake in the Dussafu Marin licence, which includes 14 producing wells linked to a floating production, storage and offloading (FPSO) unit via a 20-km pipeline.  

Meanwhile, UK-based privately owned operator Perenco successfully drilled the Hylia South West discovery in early 2024, finding substantial oil in the Ntchengue Ocean reservoir. Furthermore, Chinese energy firm CNOOC began wildcat drilling on offshore blocks BC-9 and BCD-10 in 2023, tapping into 1.4bn barrels of estimated recoverable resources.

According to the AEC, success here could double Gabon’s oil production and unlock more deepwater prospects. Despite these advances, much of Gabon’s deepwater acreage remains unexplored, offering opportunities for new investors.

Gabon’s long-term strategy aims to position the country as a regional petroleum hub by upgrading its refining, storage, and distribution capabilities, says the AEC. Major infrastructure projects include Perenco-led $2bn Cap Lopez liquefied natural gas (LNG) terminal, located at the existing oil terminal and expected to begin production in 2026.

The facility will include a floating LNG (FLNG) vessel with capacity for 700,000 tonnes of LNG and 25,000 tonnes of liquefied petroleum gas (LPG) per year. “The project complements the Batanga LPG facility, which came online in December 2023 with a target production capacity of 15,000 tonnes of LPG annually,” the AEC said.

Additionally, Gabon has plans to expand the SOGARA, its sole operating refinery, from 1.2 to 1.5mn tonnes of crude annually, aiming for self-sufficiency in refined products by 2030. The government also intends to raise storage capacity for refined fuels from 60 to 90 days of national consumption to enhance energy security.

According to Verner Ayukegba, senior vice president at the AEC, deepwater exploration and production could reshape Gabon’s economy, with new discoveries helping to establish a regional petroleum hub in Central Africa.

“Through its aggressive investment campaign, commitment to regulatory reform and engagement with IOCs, the Ministry of Petroleum is strengthening the competitiveness of doing business in Gabon,” said Ayukegba.