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Gabon to reduce Oil production by 23% in 2020

Gabon is in the process of reducing its oil production, in accordance with the resolution adopted in April by the Organization of the Petroleum Producing Countries (OPEC) and its allies. In 2020, the country’s production should drop by 23% to around 154,000 barrels per day, against 200,000 barrels per day in 2020.

Gabon took part in a videoconference on June 6 at the 179th meeting of the conference of the Organization of the Petroleum Producing Countries (OPEC). On this occasion, the Gabonese Minister of Petroleum declined the resolutions taken by Gabon to stabilize the oil market, very affected by the Covid-19 crisis.

Following the collapse of the oil market in April, OPEC members, as well as allied countries, agreed to the voluntary reduction of production quotas. A resolution that came into effect on May 1. “Gabon as a producer country of OPEC has subscribed to this voluntary reduction in production,” said the Minister of Petroleum.

“It must be recognized that, as far as Gabon is concerned today, our production comes from so-called mature fields. This means fields which have shown their full potential and which for the most part are in the process of decline. It should be understood that for these fields, production is only ensured through work. When this work is suspended or stopped, natural decline resumes its course. So the drop in production ultimately, ”explained Vincent de Paul Massassa.

In Gabon, several operators have suspended or cancelled their operations this year, following the covid-19 crisis and the fall in oil prices. Consequence: the production expected in 2020 will not be there. Gabon intended to start increasing its production in 2020 to 300,000 barrels per day, compared to 200,000 barrels per day in 2019.

“And it goes without saying that this is part of the reduction effort that our country intends to present to OPEC to reach its daily reduction quota which is around 23%,” said the oil minister. In 2020, the country’s production should therefore be around 150,000 barrels per day.

After dropping to $ 20 or less in April, the price of a barrel of oil has stabilized at $ 40. A situation that gives hope for a better tomorrow, provided that the efforts requested by OPEC are maintained. “It is, therefore, necessary for us to continue to ensure compliance with the commitments and to ensure the positive impacts of our resolutions (…) The effort required of OPEC countries and our allies should continue during the July and maybe even until the end of 2020, ”concluded Vincent de Paul Massassa.