Malaysia’s state-owned oil company, Petronas has signed an agreement with Gabon for two exploration permits after the African country enacted a new oil law last month.
This was made known by the government in a statement where Noel Mboumba, Gabon’s petroleum minister was cited.
According to the statement, Petronas already has a presence in Gabon and is the first company to sign an exploration and production contract in the country in five years. The deal follows the enactment of a revised hydrocarbons code last month, made with the support of the International Monetary Fund, IMF.
The statement citing Mboumba mentioned that the new code is more fiscally attractive than the previous one.
Besides, like several other Central African nations, Gabon which is a member of the Organization of Petroleum Exporting Countries, OPEC relies on oil revenue. Moreover, despite a slump in production, the country sees potential in offshore output as Gabon recently put 35 oil blocks for sale.
The deal with Petronas is for offshore blocks F12 and F13 and once developed will have a production of 200,000 bpd according to World Oil.