Gabon is accelerating negotiations with BP and Exxon Mobil to unlock its deepwater oil potential, with authorities aiming to finalize key agreements within six months as part of efforts to sustain production and attract fresh investment.
Oil Minister Clotaire Kondja said the government expects to convert existing reconnaissance agreements into exploration commitments within three to four months, followed by the signing of production sharing contracts (PSCs) within six months.
The announcement was made at the “Invest in Africa Energy” forum held in Paris, where officials outlined a two-phase timeline to advance offshore exploration in largely untapped deep and ultra-deepwater blocks.
The negotiations build on memorandums of understanding signed with BP and Exxon Mobil in October 2025, targeting offshore areas that remain underexplored due to their technical complexity and high development costs.
Kondja said deepwater exploration represents a strategic opportunity for Gabon, particularly as several mature oil fields face declining output. By focusing on offshore resources, the government aims to renew reserves and maintain production levels in the medium to long term.
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“Not all operators are willing to engage in deepwater exploration,” he noted, highlighting the importance of attracting companies with the financial capacity and technical expertise required for such projects.
The push for new investment comes as the country undertakes broader reforms to improve the attractiveness of its hydrocarbons sector. Authorities have been revising the legal and regulatory framework governing oil and gas activities to better align with industry realities.
A key reform introduced in November 2025 separates the petroleum and gas codes, allowing for more tailored policies. The government has also removed signature bonuses for deep offshore projects — a move aimed at lowering entry costs and encouraging participation in high-risk, capital-intensive exploration.
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Officials say the revised framework is designed to reflect the unique challenges of deepwater operations, where long development timelines and significant upfront investment often deter potential investors.
At the same time, the state-owned Gabon Oil Company has been expanding its footprint in the sector through a series of acquisitions. It purchased Assala Energy in 2024 and acquired assets from Tullow Oil in 2025, adding around 10,000 barrels per day in production and approximately 36 million barrels in proven reserves.
These moves are part of a broader strategy to strengthen national participation in the oil sector while maintaining partnerships with international energy companies.
In parallel with ongoing negotiations, Gabon is preparing to launch new offshore licensing rounds in 2026, covering roughly 70 percent of its unexplored acreage. The initiative is expected to further open up the sector to foreign investment and expand exploration activity.
Analysts say the success of the strategy will depend on the country’s ability to offer competitive fiscal terms and regulatory stability, particularly as global energy companies become more selective in capital allocation.
The renewed focus on deepwater exploration also comes at a time of shifting global energy dynamics, with oil producers seeking to balance investment in traditional hydrocarbons with growing pressure to transition toward lower-carbon energy sources.
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For Gabon, however, officials argue that developing offshore resources remains essential to economic stability, given the sector’s central role in government revenues and export earnings.
If finalized on schedule, the agreements with BP and Exxon Mobil could mark a significant step in revitalizing the country’s oil industry and positioning it as a key player in deepwater exploration in West and Central Africa.
Gabon is one of sub-Saharan Africa’s established oil producers, with hydrocarbons accounting for a significant share of government revenue, exports and foreign exchange earnings. However, like many mature producers, the country has faced declining output in recent years as ageing onshore and shallow-water fields reach depletion, prompting authorities to seek new sources of production.
Historically, Gabon’s oil sector has been dominated by conventional fields developed by international oil companies, including TotalEnergies, Shell and Exxon Mobil. Production peaked in the late 1990s at over 350,000 barrels per day but has since declined steadily, hovering at significantly lower levels in recent years.
In response, the government has shifted its focus toward offshore resources, particularly deep and ultra-deepwater reserves that remain largely underexplored. These क्षेत्रों are believed to hold substantial untapped potential but require advanced technology, high capital investment and long development timelines, limiting participation to major international firms such as BP and Exxon Mobil.
To attract such investors, Gabon has been reforming its regulatory framework. The country introduced a revised hydrocarbons code in recent years to improve fiscal competitiveness, simplify procedures and align contract terms with industry expectations. The latest reforms go further by separating petroleum and gas legislation and removing signature bonuses for deep offshore projects, reducing upfront costs for investors.
At the same time, the state has strengthened its direct role in the sector through Gabon Oil Company, which has expanded its asset base via acquisitions. The purchase of Assala Energy in 2024 and assets from Tullow Oil in 2025 marked a shift toward greater national participation and control over production.
These developments come amid broader efforts across Africa to balance resource development with evolving global energy trends. While international pressure is mounting for a transition to cleaner energy, many African producers argue that oil and gas remain critical for economic development, industrialisation and fiscal stability.
Gabon’s strategy reflects this dual reality — seeking to maximise returns from existing hydrocarbon resources while improving governance and attracting investment in more technically challenging areas such as deepwater exploration.
The planned licensing rounds in 2026, covering a large share of unexplored offshore acreage, are expected to be a key test of investor appetite. Success will depend on global oil market conditions, regulatory clarity and the country’s ability to compete with other emerging deepwater frontiers.
Against this backdrop, ongoing negotiations with BP and Exxon Mobil represent a critical step in Gabon’s efforts to stabilise production, replenish reserves and secure long-term revenue from its oil sector.
