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Gabon recorded a 5.3% increase in oil production during the first quarter 2020, compared to the same period in 2019.
This is according to a report published by Gabon’s Directorate General of Economy and Tax Policy (DGEPF), which indicates that oil production recorded an increase up from 2.64 million in 2019 to 2.78 million tons during the same period a year later. “The work to improve yields in mature fields and the ramp-up of the Simba field explain this increase,” the DGEPF noted, which operates under the Ministry of Economy and Finance.
The report also points out that crude oil exports fell by over 20% to 2.35 million metric tons, due to weak demand, linked to the international production glut. The document details “the average crude prices were $50.26 per barrel for Brent and $49.16 per barrel for the basket of Gabonese crude, representing respective decreases of 20.5% and 21% compared to first quarter of 2019. This development is linked to the Covid-19 crisis, which accentuated the drop in demand for oil, already exacerbated by the price war between Russia and Saudi Arabia.”
As a historic producer in Africa, with first oil produced in 1956, Gabon saw peak production in 1997. This year is marked as a decisive year in Gabon’s oil production history. Twelve exploration licenses have been signed during the country’s ongoing 12th licensing round.