Gabon Upstream (Oil and Gas) Fiscal and Regulatory Guide

Gabon Upstream (Oil and Gas) Fiscal and Regulatory Guide

Summary

Gabon governs upstream petroleum operations through production-sharing agreements, although under the 2019 Petroleum Code, concession agreements may be signed for mature or marginal fields, or with domestic operators. In 2019, the country introduced new petroleum legislation that effectively reverses the tough fiscal changes introduced in 2014. The new 2019 terms will be tested during the 12th licensing round, which was previously scheduled to close in April 2020, however this has now been postponed until a later date due to the COVID-19 pandemic. Since the new code was introduced there have been early indications that the terms could encourage investment. Following the code, Petronas, Perenco, CNOOC, and Assala Energy have executed exploration agreements, the first signed in five years. Although, whilst the new terms are significantly more attractive, the capital expenditure cuts (focused on exploration budgets) by companies and the sector uncertainty stemming from the COVID-19 pandemic may be barriers to investment in the near term.

“Gabon Upstream (Oil and Gas) Fiscal and Regulatory Guide”, presents the essential information relating to the terms which govern investment into Gabon’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Gabon’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Gabon
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Gabon
Reasons to Buy
  • Understand the complex regulations and contractual requirements applicable to Gabon’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making


  • Executive Summary
    • Table Regime Overview
    • Regime Overview „Ÿ Production Sharing Agreements
    • Regime Overview „Ÿ Concession Agreements
    • Timeline
      • Table Gabon, Key Events Since Year 2000
  • State Take Assessment
  • Key Fiscal Terms – Production Sharing Agreements
    • Royalties, Bonuses, and Fees
      • Table Gabon, PSA, Signature Bonus Payments (US$), Etame (1995), Diaba (2006), &Nkembe (2013/2014) licenses
      • Table Gabon, PSA, Production Bonuses (US$), Diaba License (2006)
      • Table Gabon, PSA, Production Bonuses (US$), Etame License (1995)
      • Table Gabon, PSA, Surface Rental Fees (US$), Post 2014
      • Table Gabon, PSA, Surface Rental Fee Rate (XAF/Hectare), Pre-2014
      • Table Gabon, PSA, Royalty Rate Ranges (%), 2019 Onwards
      • Table Gabon, PSA, Royalty Rates (%), Diaba License (2006)
      • Table Gabon, PSA, Royalty Rates (%), Awoun License (1999)
      • Table Gabon, PSA, Royalty Rates (%), Etame License (1995)
    • Cost Recovery
      • Table Gabon, PSA, Maximum Cost Recovery Limit (%), 2019 Onwards
      • Table Gabon, PSA, Cost Recovery Limit (%), Diaba License (2006)
      • Table Gabon, PSA, Cost Recovery Limit (%), Other Pre-2014 Examples
    • Profit Sharing
      • Table Gabon, PSA, State Minimum Profit Oil Share (%), 2019 Onwards
      • Table Gabon, PSA, Licensee Profit Share (%), Diaba License (2006)
      • Table Gabon, PSA, Licensee Profit Share (%), Etame License (1995)
    • Direct Taxation
    • Indirect Taxation
    • State Participation
    • Natural Gas Provisions
    • Domestic Market Obligation
    • Local Content
    • Abandonment Provisions
    • Joint Committee
  • Key Fiscal Terms – Concession Agreements
    • Royalties, Bonuses, and Fees
      • Table Gabon, Concession Agreements, Surface Fees (XAF/sq km), 1974
    • Direct Taxation
      • Table Gabon, Concession Agreements, Depreciation Rates (%), 2014 Finance Law
    • Local Content
  • Regulation and Licensing
    • Legal Framework
    • Institutional Framework
    • Licensing Process
      • Table Gabon, PSA, 12th Licensing Round, Work Commitment Bid Range And Score Range, 2020
      • Table Gabon, PSA, License Duration (Years), 2015 onwards
  • Appendix
    • References
      • Table References

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