Best Prospect Industry – Petroleum Industry

Petroleum is the primary source of public revenue in Gabon, making up 63 percent of the national budget and 51 percent of GDP. Last year’s precipitous fall in the price of a barrel of crude oil from USD 147 in July to less than USD 37 by the end of December had significant, immediate effect on Gabon’s economy. The government reduced the 2009 national budget by 28 percent before the end of 2008. Plans for a second reduction were announced, though the size of these further cuts has not yet been made public.

Moreover, the government of Gabon anticipates a notable slowdown in activities tied to oil production including exploration, transformation, and distribution. The general consensus among oil industry representatives is that the current worldwide crisis will not affect Gabon’s petroleum sector in the long-term, which was experiencing a gradual decline in production even before the recent fall in the price of oil. However, in the short- and medium-term, management plans have been modified, with many exploration and investment projects (particularly those from smaller oil industry players) being suspended until market conditions improve.

There are approximately 10 American companies currently active in the petroleum industry, which is concentrated in Port Gentil.

Opportunities

Exploration remains the principal activity, but some opportunities exist in refining, research and development, and services (e.g., logistics, construction, drilling, maintenance, and supplies).