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Gabon planning to revise hydrocarbon law to attract investors

Gabon plans to revise its hydrocarbons law to attract new investment, the oil ministry said on Thursday.


Reuters
Updated: 23-03-2018 15:43 IST
Gabon planning to revise hydrocarbon law to attract investors

A panel of legal, economic and tax experts will meet from March 26 to 28 to look at changes to the law, the ministry said. (Image Credit: Geograph)

Gabon plans to revise its hydrocarbons law to attract new investment, the oil ministry said on Thursday.

Under the current legal framework, the Gabonese state holds a minimum 20 percent stake in oil projects. The state oil company has the right to a stake of up to 15 percent.

That law was implemented in 2014, the year that the market was shocked by a 50 percent drop in prices from over USD 100 a barrel to around USD 50 due to global oversupply.

"The same fiscal framework cannot be applied both when the barrel is at USD 150 and when it's at USD 50 or USD 60, which limits the room to maneuver of investors interested in exploration," the oil ministry said in a statement.

Like other oil-dominated economies of the Economic Community of Central African States' single-currency zone, Gabon has struggled due to the decline in crude prices, forcing it to seek support from the International Monetary Fund last year.

A panel of legal, economic and tax experts will meet from March 26 to 28 to look at changes to the law, the ministry said.

Companies operating in Gabon include Royal Dutch Shell, Total and Tullow Oil.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

COUNTRY : Gabon