Gabon plans to revise its hydrocarbons law to attract new investment, the oil ministry said March 22.
Under the current legal framework, the Gabonese state holds a minimum 20% stake in oil projects. The state oil company has the right to a stake of up to 15%.
That law was implemented in 2014, the year that the market was shocked by a 50% drop in prices from over $100 per barrel to about $50 due to global oversupply.
“The same fiscal framework cannot be applied both when the barrel is at $150 and when it’s at $50 or $60, which limits the room to maneuver of investors interested in exploration,” the oil ministry said in a statement.
Like other oil-dominated economies of the Economic Community of Central African States’ single-currency zone, Gabon has struggled due to the decline in crude prices, forcing it to seek support from the International Monetary Fund last year.
A panel of legal, economic and tax experts will meet from March 26 to March 28 to look at changes to the law, the ministry said.
Companies operating in Gabon include Royal Dutch Shell, Total and Tullow Oil.
Recommended Reading
Yellen Expects Further Sanctions on Iran, Oil Exports Possible Target
2024-04-16 - U.S. Treasury Secretary Janet Yellen intends to hit Iran with new sanctions in coming days due to its unprecedented attack on Israel.
CEO: Linde Not Affected by Latest US Green Subsidies Package Updates
2024-02-07 - Linde CEO Sanjiv Lamba on Feb. 6 said recent updates to U.S. Inflation Reduction Act subsidies for clean energy projects will not affect the company's current projects in the United States.
Global Energy Watch: Corpus Christi Earns Designation as America's Top Energy Port
2024-02-06 - The Port of Corpus Christi began operations in 1926. Strategically located near major Texas oil and gas production, the port is now the U.S.’ largest energy export gateway, with the Permian Basin in particular a key beneficiary.
The Problem with the Pause: US LNG Trade Gets Political
2024-02-13 - Industry leaders worry that the DOE’s suspension of approvals for LNG projects will persuade global customers to seek other suppliers, wreaking havoc on energy security.
BWX Technologies Awarded $45B Contract to Manage Radioactive Cleanup
2024-03-05 - The U.S. Department of Energy’s Office of Environmental Management awarded nuclear technologies company BWX Technologies Inc. a contract worth up to $45 billion for environmental management at the Hanford Site.