Gabon works on attractive oil contract terms

The government of Gabon is working on adding a series of attractive contract terms to its current oil and gas contracts. Gabon recently launched a call for tenders for 23 blocks in deep water and 11 blocks in shallow waters; the new terms are designed to attract explorers and ease working conditions in the country.

These conditions will be included in the new petroleum code. However, the timetable for drafting the code could be delayed by parliamentary obstacles and a presidential power vacuum, according to The Petroleum Economist.

The implementation of the new petroleum code is seen as an important key to the success of the licensing round and the revival of production in the country, which has been declining over the years.

According to reports the new code could reduce an energy company’s tax by 35%, a minimum rate royalty rate of 7% for conventional offshore oil and 4% for gas. For deep and ultra-deep waters, royalty rates of 5% for oil and 2% for gas were mirrored by Libreville.

Source: Petroleum Africa

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