Perenco’s New Oil Discovery Boosts Gabon’s Production Goals

The independent oil and gas company has fast-tracked the development of its latest find in the shallow waters of Gabon.

by Motoni Olodun

Perenco, an independent oil and gas company, has announced the start of production from its Hylia South West discovery in the shallow waters offshore Gabon. The company said the new field is producing 3,000 barrels of oil per day (bpd) and has the potential to hold between 20 and 100 million barrels of oil in place.

The Hylia South West discovery is part of Perenco’s ambitious exploration campaign in Gabon, where it operates 12 offshore and onshore permits. The company drilled an exploration well on the Mono permit in December 2022 and found two oil columns in different reservoirs. It then installed a pipeline and a self-elevating offshore production platform to fast-track the development of the field.

Perenco plans to conduct more testing and drilling on the Hylia Southwest field in the next 18 months to appraise and optimize its resources. The company also intends to drill more exploration wells in other areas of Gabon, including the Wamba and Igonguino prospects, where it made previous discoveries.

Perenco’s success in Gabon comes when the country seeks to increase its oil production and attract more investment in its hydrocarbon sector. Gabon is currently the eighth-largest oil producer in sub-Saharan Africa, producing 184,000 bpd in April 2021. However, most of its fields are mature and declining, which has led to a drop in output from 236,000 bpd in 2011.

To reverse this trend, Gabon adopted a revised Hydrocarbons Code in 2019, which offers more incentives and flexibility to oil and gas companies. The country also launched a licensing round for 35 new oil blocks in 2020, which was extended until June 2021 due to the COVID-19 pandemic. The government hopes to attract major players and boost production to 500,000 bpd by 2025.

Perenco’s general manager in Gabon, Adrien Broche, said the company was proud to contribute to Gabon’s development and vision for the oil and gas sector. He said Perenco was looking forward to further leads being as positive as Hylia South West.

Source: Energy Voice

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