Gabon has launched a new offshore exploration licensing round for 34 oil and gas blocks and plans to soon enact new legislation that would scrap the 35-percent corporate tax on energy companies, Gabon’s Oil Minister Pascal Ambouroue said at an oil conference on Wednesday.
OPEC member Gabon, a country on Africa’s West Coast, wants to attract more investors to its oil and gas industry and is currently overhauling its energy legislation to replace the 2014 petroleum code.
Gabon is a small crude oil producer—only neighboring Equatorial Guinea pumps less oil than Gabon within OPEC. Gabon’s crude oil production has averaged around 187,000 bpd so far this year, according to OPEC’s secondary sources.
Gabon’s new law would set a minimum royalty rate of 7 percent for conventional offshore oil and of 4 percent for gas. For deepwater and ultra-deep waters, the royalty rates would be 5 percent for oil and 2 percent for gas, according to Bernardin Assoumou, the director general of hydrocarbons.
Source: Oil Price