Gabon oil production stops declining

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Gabon oil production stops declining

afrol News, 13 October - Steadily dropping since its peak in 1997, Gabon's oil production is finally experiencing a slight growth, new statistics reveal. In the same period, Gabon has been reduced from the third to the sixth largest oil producer in sub-Saharan Africa.

According to statistics released by the US government agency Energy Information Administration (EIA), Gabon's decrease in oil production has now stopped. During the first nine months of 2006, Gabon produced 237,000 barrels per day (bbl/d) of crude oil, EIA informs. This is a small increase from 2005.

Contrasted with Gabon's 1997 peak of 371,000 bbl/d, 2006 oil production however has declined by 36 percent. "In part, the decline in production is due to maturing fields and a lack of new fields coming online, something that Gabon is working to change over the next few years," the US agency explains. Despite these efforts, EIA however foresees further "looming oil export declines."

The main reason for Gabon's decreased oil production is found on its largest producing oil field, Shell's offshore Rabi-Kounga, which now only produces around 55,000 bbl/d. This is down from its 1997 peak of 217,000 bbl/d. In an effort to extend the productive life of the field, Shell in 2003 however began re-injecting associated natural gas into the field.

Apart from Rabi-Kounga, Gabon in fact has been successful in increasing its oil production during the last years. Given the current high world market prices, Libreville authorities have managed to recruit several smaller firms to bring new oil fields online in Gabon.

Vaalco, Addax Petroleum, and Sasol are involved in the Etame offshore field, with a current of approximately 18,000 bbl/d. In July this year, Addax Petroleum purchased the interests of Pan-Ocean Energy in Gabon for US$ 1.4 billion. The acquisition now makes Addax the largest producer in Gabon, with total production of more than 100,000 bbl/d.

Further investments are also on track. Only last month, FirstAfrica Oil completed initial drilling in the offshore East Orovinyare oilfield. The company hopes to have production from the field online by the third quarter of 2007. Initial production is expected at over 7,000 bbl/d. Several onshore fields are also currently being explored, developed or expanded.

Gabon was hit hard by the declining oil production, with its highly ineffective administration being used to almost unlimited revenues. Despite its small population of about 1.4 million, limited social spending and a very slow progress in developing infrastructure, the Libreville government had accumulated a debt of around US$ 3.8 billion - debt payments now amounting to 40 percent of the annual government budget.

Faced with a financial crisis, Libreville during the last two years has reformed its economy, increased transparency, embraced good governance and achieved new oil investments. In 2005, Gabon finally experienced sustainable growth figures, with GDP increasing by 2.7 percent - around the same as population growth. Also inflation was reduced to close to nothing, following decades of hiking prices in the oil-driven economy.

In 2005, Gabon registered per-capita GDP of approximately US$ 5,000, which is significantly higher than the sub-Saharan African average of US$ 1,500. However, analysts estimate that 60–70 percent of Gabonese live below the poverty line despite forty years of large oil exports.

By staff writer

© afrol News

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Congo prepares for second round election

afrol News, 13 October - Voters in Congo Kinshasa (DRC) go for the second round of presidential and provisional election on 29 October. The race is between President Joseph Kabila and his former vice president, Jean-Pierre Bemba.

Congo Kinshasa has not held democratic elections for 45 years. Its July presidential electon, which has been hailed by the international community, did not prove a winner. The two front runners - Joseph Kabila and Jean-Pierre Bemba - will battle it out for the run-off. Mr Kabila collected 44.81 percent of votes while Mr Bemba got 20.03 percent.

The announcement of the elections results sparked off bloody violence between supporters of Mr Kabila and Mr Bemba.

The UN is assisting Congo to hold peaceful, free and fair elections. It is against this background that the UN has dispatched its officials - heads of political affairs and electoral assistance division - Mr Ibrahim Gambari and Craig Jennesse - to discuss the key political actors, officials of the Kinshasa Independent Electoral Commission (IEC) and the UN mission in the country.

Today, the European Union (EU) has deployed about 300 election observers to the liaison offices of the IEC. The observers, who want a "transparent electoral process in the context of trust and mutual respect to thrive among Congolese," have started consulting with other national and international observer groups to ensure a truly independent monitoring of elections.

The deputy head of EU election mission, Eric Palleres, urged the IEC to ensure that the elections are conducted in a transparent manner through immediate publication of the results. He also said the procedure of strictly respecting the list of voting stations published on 28 September.

A civil war broke out in Congo Kinshasa's eastern region in 1996. This later led to the overthrow of President Mobutu Sese Seko by Laurent Kabila. Mr Kabila was succeeded to the throne by his son, Joseph Kabila, following his assassination in 2001.

The war that claimed over four million lives officially ended in 1999 when the warring parties agreed to sign a UN brokered peace accord. However, violence has continued in the country's eastern regions of Bunya, Katanga and Eturi.

A recent UN report indicted Congolese armed forces as the main violators of human rights in the eastern province, where women continue to be raped day in, day out. DR Congo is a former Belgian colony that never has experienced democratic governance. It has an estimated population of 55 million people. The Congo gained independence in 1960 and Mr Mobutu seized power five years later and named the country Zaire.

With the backing of the US, Mr Mobutu was allowed to host operations against Soviet-backed Angola.

By staff writer

© afrol News