BMI View: A string of significant discoveries in Gabon's deepwater offshore offer upside risk to thecountry's longer term oil production outlook, although a challenging operating environment, the strains ofa lower oil price environment and long project lead times all pose risk to the downside. The country's gasoutlook remains heavily bearish, due to a low level of investment in midstream infrastructure, a lack ofexport options and limited domestic offtake.
The main trends and developments we highlight for Gabon's oil and gas sector are as follows:
While we expect some near-term gains in oil production, the longer term trend for Gabon's oil sector isone of decline, due to both natural depletion at maturing fields and limited new production coming onstream.
Although Gabon's deepwater potential offers significant upside risk to our view, the country's newhydrocarbons law has materially worsened fiscal and regulatory terms for international oil and gascompanies.