Gabon has a well-developed oil and gas industry, but has experienced declining production as the country's fields mature. This trend may eventually reverse as operators work on various exploration and development activities in 2012.
Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.
Gabon had proved oil reserves of 3.7 billion barrels at the end of 2010, according to the BP (NYSE:BP) Statistical Review of World Energy.
Oil production averaged 245,000 barrels per day in 2010, making Gabon the sixth-largest producer in Africa. Oil production has been stable here the last few years, but has been in a long-term decline from the peak level of about 365,000 barrels per day reached in 1996.
Total (NYSE:TOT) is one of the largest producers in Gabon, with 2011 production of 58,000 barrels of oil equivalent (BOE) per day. This production has been declining in recent years as producing fields mature.
Total is working on the redevelopment of the Anguille Field and recently finished installing a new platform at the field. The company plans to drill 21 development wells from this platform starting in the second quarter of 2012.
Total is active in other license areas as well. During the first quarter of 2012, it brought two wells onto production and is drilling two other wells. The company also has several exploration prospects that it expects to start drilling over the next year.
SEE: Oil And Gas Industry Primer
Royal Dutch Shell (NYSE:RDS.A, RDS.B) is also active in Gabon and reported production of 65,000 barrels of oil per day from five oil and gas fields in Gabon.
Addax Petroleum has interests in five areas located in both onshore and offshore Gabon. The company operates the onshore Panthere and Maghena license areas and is involved on a non-operated basis with Royal Dutch Shell on a third onshore and two offshore license areas. Addax Petroleum was acquired by China Petroleum & Chemical Corp. (NYSE:SNP) in 2009.
VAALCO Energy (NYSE:EGY) owns around a 28% working interest and operates the offshore Etame Marin license area. Gross oil production from here totaled 22,000 barrels per day from 10 wells as of February 2012. The company is progressing on several exploration prospects on this license area and another opportunity in the onshore.
Harvest Natural Resources (NYSE:HNR) operates the Dussafu license area and reported a successful exploration well here in 2011. The Ruche Marin-1 found 55 feet of net oil pay, and after two successful appraisal wells, the company is evaluating the results to plan a possible development program.
SEE: A Primer On Offshore Drilling
The Bottom Line
Many oil and gas operators have operations in Ghana and are actively developing existing producing fields as well as exploring in new, nearby areas. These activities will result in increased production in Gabon over the next few years.
At the time of writing, Eric Fox did not own shares in any of the companies mentioned in this article.
Mutual Funds & ETFsLearn about arbitrage funds and how this type of investment generates profits by taking advantage of price differentials between the cash and futures markets.
Investing NewsWill Ferrari's shares move fast off the line only to sputter later?
Investing NewsShares of Glencore International, a leading multinational commodities and mining company, jumped by around 15% on London Stock Exchange, after the shares had gained about 71% earlier on the Hong ...
InvestingCommodity prices have been heading lower for more than four years, being the worst performing asset class of 2015 with more losses in cyclical commodities.
Stock AnalysisHere are five stocks that pay safe dividends and should be at least somewhat resilient to a bear market.
InvestingThe further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
InvestingWest Texas Intermediate oil futures have recently made pronounced movements. What do they bode for the world market?
InvestingGrowing global demand for quinoa has impacted Bolivian farmers' way of life. Should the American consumer be wary of buying this product?
Fundamental AnalysisOptions market trading data can provide important insights about the direction of stocks and the overall market. Here’s how to track it.
Stock AnalysisCan these two oil stocks buck the trend?
When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>