Gabon plans to reduce oil production by more than 10,000 barrels of oil per day (bpd) – with an average price per barrel expected to drop from $57 to $41, in 2021.
According to a budget Bill currently under review – which states that oil production over the next fiscal year will be 10.5 million tons or nearly 210,000 bpd – the reduction in oil production will lead to better adherence to the Organization of the Petroleum Exporting Countries and its allies (OPEC+) production cuts.
In 2019, oil production in Gabon was approximately 220,000 bpd; official 2020 production figures are yet to be released and 2021 figures are expected to be lower due to continued OPEC+ cuts.
Gabonese oil production has been declining for several years, due to the maturity of several fields and insufficient investments to renew production bases. According to the International Monetary Fund, the share of oil in Gabon’s gross domestic product amounts to 38.5%.