6.250
%
Neutral
64
mm boe
93
%
The recent coup attempt, while having minimal impact, underlines the current instability. Nevertheless, the country remains open to HC investment, creating a positive environment for investment.
March 26, 2024
Africa - Central
mm bbl
bcf
Central Africa, bordering the Atlantic Ocean at the Equator, between Republic of the Congo and Equatorial Guinea.
Multiple (PSC/Concession)
Both concession and production sharing ("PSC") fiscal terms exist in Gabon. Older fields (pre-1977) operate under the terms of a concession agreement whereby only royalty and corporation tax are paid; these terms are still valid where those fields are still producing. However, recent and future awards are taxed under PSC terms, first introduced in 1977. Incentives for deep-water developments exist through higher cost recovery ceilings and profit oil splits.
Gabon is a historically stable country located in a volatile region of the world and has significant economic advantages: a small population (roughly 2mm), an abundance of natural resources, and a strategic location along the Gulf of Guinea. After taking office in 2009, President Ali Bongo Ondimba introduced reforms to diversify Gabon’s economy away from oil and from traditional investment partners and to position Gabon as an emerging economy. Gabon promotes foreign investment across a range of sectors, particularly in the oil and gas, infrastructure, timber, ecotourism, and mining sectors. Despite these efforts, Gabon’s economy remains dependent on revenue generated by the exportation of hydrocarbons. In order to attract new investment into the country, Gabon adopted a new hydrocarbon code and a new Mining code in July, 2019. These laws will provide a modernised basis for the legal, institutional, technical, economic, customs and tax regimes of the Gabonese hydrocarbons and mining sector. Corruption and lack of transparency remain an impediment to investment. The Gabonese government inconsistently applies customs regulations.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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