Gabon's departure from OPEC will allow for unrestricted development of the country's oil reserves. In 1996, the majority of Gabon's oil exports went to the United States, accounting for about 2.5 percent of total U.S. oil imports.

GENERAL BACKGROUND

Results from the legislative elections held at the end of 1996, and the beginning of 1997 show that the ruling party, the Gabonese Democratic Party (PDG), retained control of the 120-member National Assembly and the newly created Senate. The creation of an upper legislative house is a result of the implementation of the Paris Accords, a set of constitutional amendments which were ratified in July 1995. Presidential elections are not scheduled again until 1998. The controversy and civil unrest surrounding the re-election of the PDG's Omar Bongo, the 26-year incumbent, in 1993, led to the Paris Accords between the Gabonese government and opposition leaders. The Paris Accords, also call for international monitoring of all elections, an end to army rule over the civilian police force, elimination of state-control of the media, and the release of prisoners detained on charges of state security. The PDG also fared well in local elections, which were held in November 1996, by claming 62 of the 98 (over two-thirds) available seats.

Gabon contains substantial natural resources. The majority of the country is covered with dense equatorial rainforest where tropical hardwoods, softwoods and rubber are harvested. Mineral reserves include manganese, uranium, iron, barite, phosphates, gold, and oil. This resource wealth has boosted the country's per capita gross domestic product (GDP) to about $3,500, one of Africa's highest. Despite the variety of natural resources, Gabon's economy remains reliant on oil exports, which account for about three-quarters of total export revenues.

The 1994 realignment of the Communaute Financiere Africaine (CFA) franc to the French franc caused a 96 percent depreciation of the currency used by the 14-members of the CFA. The CFA devaluation adversely impacted consumer prices, which rose by 36 percent in 1994. The government's tight monetary and fiscal policies helped to lower inflation, to 10 percent in 1995 and an estimated 6.2 percent in 1996. Real GDP growth rates, which are largely driven by dollar-denominated oil export revenues, have remained relatively constant despite the recent inflationary pressures. Real GDP is projected to rise by an estimated 2.8 percent in 1997, up from 2.6 percent in 1996. The Gabonese government is hoping to increase economic growth by diversifying from its dependency on oil exports, restructuring and reducing its civil service, and privatizing several parastatal industries.

OIL

Gabon contains proven oil reserves of 1.34 billion barrels. Most of Gabon's crude oil has gravities in the 30^o to 35^o API range, with a small amount of heavier, 25^o API output. Gabon's primary crude exports are the Rabi Light (34^o API) and Mandji Blend (30^o API and 1.1 percent sulfur) streams.

Gabon exported about 184,000 barrels per day (b/d) of crude oil to the United States in 1996. This accounted for 50 percent of Gabon's crude production and 2.5 percent of U.S. crude imports. Western Europe is also a key destination for Gabonese crude, with occasional spot shipments to the Far East.

Gabon's departure from OPEC will allow it to maintain its oil production above its previous OPEC quota of 287,000 b/d, but production probably will not rise above 400,000 b/d without substantial new discoveries. Gabon's oil production capacity is around 375,000 b/d, and it produced 370,000 b/d in 1996. Gabon's largest field is the onshore Shell operated Rabi-Kounga structure, which has recoverable reserves of at least 440 million barrels. Current output levels of 200,000-220,000 b/d are expected to be maintained until 1998. Elf Aquitaine (Elf) produces about 133,000 b/d, mainly from the offshore Anguille/NE/SE, Hylia, and Torpille/NE fields and the Avocette and Coucal onshore fields. Perenco, formerly Kelt Energy, is the other operator that accounts for the remainder of Gabon's oil output, about 25,000 b/d, coming primarily from its Gombe Maria Beta and Oguendjo Band C/Z fields. U.S. independent Vaalco Energy and its partner, the Philippines Petrofields are expected to bring the offshore 7-million barrel Ekouata field on-line. Ekouata's peak output will reach 3,900 b/d. In February 1997, Italy's Agip announced it would commence development work immediately on its Limande offshore oilfield which has an estimated capacity of 10,000 b/d. Reserves on the Limande field were tentatively estimated at 15 million barrels. Canadian-based Chauvco Resources expects production to begin in the third quarter of 1997 from its Remboue permit. Initial output is expected to be 7,500 b/d.

In order to maintain its oil reserves, Gabon has actively sought foreign oil company investment, and several exploration blocks have been awarded recently. Vanco Energy of Houston, has been awarded two offshore blocks, the Anton Marin and the ultra-deep water Astrid Marin. Astrid Marin is located 90 miles offshore southern Gabon in depths ranging from 8,200 to 9,900 feet. The block is the extension of the deepwater play being explored in the Congo, Cabinda (Angola), and Angola proper. Activity in those areas have yielded several significant discoveries including Elf's 600 million barrel Moho in the Congo, Chevron's 1 billion barrels in Cabinda, and Elf's Girassol field in Angola with reserves estimated at over 1 billion barrels. Canada's Ocelot Energy was awarded two blocks, Panthere-Nze and M'Bindji in late 1996. Ocelot estimates that reserves of the Panthere-Nze field from 20 to 30 million barrels. First production on the field could begin by the end of 1997, with full production of 5,000 -10,000 b/d beginning by 2001. Exploration contracts have also been completed with Marathon, Amoco and Santa Fe Energy.

The most significant signing was the exploration and development deal between Gabon and South Africa's Energy Africa (Engen). Included in the deal were access rights to 22 exploration licenses, and development rights in 6 other fields. Engen received a 40 percent share in the Ganga, Moukouti, and Nuingo satellite fields of the onshore Rabi-Kounga field, which are operated by Perenco (the former Kelt). Engen also acquired stakes in three offshore fields, Ablette (20 percent) and Turnix (27.5 percent) operated by Perenco, and the Agip operated Limande (20 percent). In June 1997, Engen exercised its rights to the first of the 22 licenses by signing a production agreement for the onshore Offoubou block.

Refining

The Sogara refinery at Port Gentil is Gabon's only refinery. Opened in 1967, Sogara is jointly owned by the Gabonese government (25 percent), private investors (9.2 percent), and a consortium of international oil firms led by Elf (21.8 percent), and Total (19 percent). The refinery is currently operating at 82 percent (17,300 b/d) of its 21,000 b/d nameplate capacity.

NATURAL GAS

Currently the majority of the natural gas produced in Gabon is used in the generation of electricity or as a refinery fuel. There currently is a proposal by Carbide Holdings to establish an iron works that would utilize gas currently flared, and gas that is re-injected into the Rabi-Kounga field.

ELECTRICITY

In March 1997, Gabon announced that a 20-year concession to run the state-owned electricity and water utility (SEEG) was awarded to a Franco-Irish consortium. It is the first privatization of a sub-Saharan water and electric utility that entails full commitment for future investment by the private operator. France's CGE and the Irish firm ESBI have pledged to invest $ 800 million to upgrade and modernize the systems. The consortium will hold a 51 percent interest in SEEG, 5 percent will be offered to SEEG's employees, and the remaining 44 percent will be offered to the general public.

URANIUM

Gabon is currently the eighth largest producer of uranium ore in the world. The Franceville Uranium Company (COMUF) in southeastern Gabon produces an average of 500-600 tons of uranium dioxide (u308) yearly. In May 1997, COMUF officials announced that the mine will shut down in 1999, after the exhaustion of its reserves.

COUNTRY OVERVIEW
President: al-Hadj Omar Bongo
Prime Minister: Paulin Obame Nguema
Independence: August 17, 1960 (from France)
Population (1996E): 1.4 million
Location/Size: Western Africa, bordering the Atlantic Ocean at the Equator between Cameroon, the Congo and Equatorial Guinea/267,670 square kilometers (103,000 square miles), about the size of Colorado
Major Cities: Libreville (capital), Port-Gentil, Lambarene, Franceville
Languages: French (official), Fang, Myene, Bateke, Bapounou/Eschira, Bandjabi
Ethnic Groups: About 40 Bantu tribes, including four major tribal groupings (Fang, Eschira, Bapounou, Bateke); about 100,000 expatriate Africans and Europeans (27,000 French)
Religion: Christian (55-75%), Muslim (less than 1%), traditional beliefs
Defense (6/95): Army (3,200), Navy (500), Air Force (1,000), paramilitary forces (including a Gendarmerie of 2,000) (4,800)

ECONOMIC OVERVIEW
Currency: Communaute Financiere Africaine (CFA) franc
Market Exchange Rate (7/15/97): US$1 = 605 CFA
Gross Domestic Product (GDP - 1990 dollars)(1996E): $6.2 billion
Real GDP Growth Rate (1996E): 2.6%
Inflation Rate (1996E): 6.2%
Current Account Balance (1996E): $0.6 billion
Major Trading Partners: France, United States, Japan, the Netherlands, Cote d'Ivoire
Merchandise Exports (1996E): $2.8 billion
Merchandise Imports (1996E): $0.8 billion
Major Export Products: Oil, timber, manganese, uranium
Major Import Products: Food, chemical and petroleum products, construction material, machinery
Oil Export Revenues (1996E): $2.2 billion
Oil Export Revenues/Total Export Revenues (1996E): 78%
Monetary Reserves (1996E, non-gold): $150 million
Total External Debt (1996E): $4.0 billion

ENERGY OVERVIEW
Minister of Mines, Energy, and Hydraulic Resources: Paul Toungui
Proven Oil Reserves (1/1/97): 1.34 billion barrels
Oil Production (1997/1QE): 370,000 barrels per day (b/d), of which all is crude oil 
Oil Production Capacity (1997E): 375,000 b/d
Oil Consumption (1995E): 19,000 b/d
Net Oil Exports (1995E): 327,000 b/d
Major Crude Oil Customers: United States (50%), France
Crude Oil Refining Capacity (1/1/97): 17,300 b/d
Natural Gas Reserves (1/1/97): 500 billion cubic feet (Bcf)
Natural Gas Production (1995E): 3.5 Bcf
Natural Gas Consumption (1995E): 3.5 Bcf
Electric Generation Capacity (1995): 0.3 gigawatts
Electricity Production (1995): 0.9 billion kilowatthours

ENVIRONMENT OVERVIEW
Total Energy Consumption (1995): 0.05 quadrillion Btu
Energy Consumption per Capita (1995): 39.3 million Btu (vs. 345.2 million Btu in U.S.)
Energy-related Carbon Emissions (1995): 1.67 million metric tons (0.02% of world carbon emissions)
Carbon Emissions per Capita (1995): 1.27 metric tons (vs. 5.4 metric tons in U.S.)
Major Environmental Issues: Deforestation and wildlife destruction

OIL AND GAS INDUSTRIES
Organization: Societe Nationale Petroliere Gabonaise
Major Refineries (capacity - b/d): Port-Gentil (17,300)
Major Oil Fields (Production - b/d, 1994): Rabi-Kounga (187,000), Avocette (18,500), Coucal (13,100), Hylia (11,400), Anguille/NE/SE (14,000), Baudroie N. (8,000), Oguendjo Band C/Z
Oil Production by Company (1995E): Shell (60%), Elf Aquitaine (33%), Perenco (7%)
Oil Terminals: Onshore: Cap Lopez, Oguendjo, Gamba Offshore: Lucina, M'Bya
Major Foreign Oil Company Involvement: Agip, Amerada Hess, Amoco, Chauvco, Elf Aquitaine, Engen, Marathon, Occidental, Ocelot, Perenco, Petrofields, Phillips, Santa Fe, Shell, Total, Vaalco, Vanco

Links to other sites:
1997 CIA World Factbook - Gabon
U.S. International Trade Administration, Country Commercial Guide - Gabon
U.S. Department of Energy's Office of Fossil Energy's International section - Gabon
U.S. Department of State's 1997 Country Commercial Guide

The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.

Offical Web Site of Gabon

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File last modified: July 24, 1997

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Elias Johnson
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