Gabon’s Oil Production Falls in Q2 After Operational Setbacks

AFRICAN BUSINESS AND ECONOMYOctober 10, 2024 at 1:17 PM UTC

TLDR

Gabon's oil production decreased by 10.8% in Q2 2024 due to operational incidents affecting major operators like Perenco, Assala, Vaalco, BWE, and Addax Petroleum.
The decline was mainly caused by a fire on the Becuna oil platform operated by Perenco, resulting in fatalities and production halts.
Gas activity in Gabon also declined by 0.9% in the same period due to technical challenges in pipeline and equipment updates.

Gabon’s oil production declined by 10.8% in the second quarter of 2024, marking a reversal after five consecutive quarters of growth, according to a report by the Ministry of Economy.

The decline was attributed to operational incidents affecting five major operators: Perenco, Assala, Vaalco, BWE, and Addax Petroleum.

A significant factor was the mid-March 2024 fire on the Becuna oil platform, operated by Perenco Oil & Gas, which resulted in five fatalities and halted production. Gas activity also saw a slight decline of 0.9%, linked to technical difficulties in updating pipelines and equipment.

Key Takeaways

Gabon’s oil production decline, driven by operational issues and safety incidents, poses risks to the country’s economic forecasts and revenue from hydrocarbons. As the nation grapples with reduced output, the government may face challenges in meeting its production and budgetary targets for the year. The underperformance could impact Gabon’s production targets of 11.4 million tonnes of oil and 306,000 tonnes of gas for 2024. It may also affect the country’s budget projections, as hydrocarbons contribute to 50% of domestic revenue.

Gabon

Oil Production

Economy

Becuna Oil

Oil and Gas

Energy Production