Identifier
Created
Classification
Origin
09LIBREVILLE504
2009-11-17 09:07:00
UNCLASSIFIED
Embassy Libreville
Cable title:
GABON: U.S. OIL COMPANY SELLS ASSETS DUE TO OIL
how-toVZCZCXRO0372 RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO DE RUEHLC #0504/01 3210907 ZNR UUUUU ZZH R 170907Z NOV 09 FM AMEMBASSY LIBREVILLE TO RUEHC/SECSTATE WASHDC 1527 INFO RUEHZO/AFRICAN UNION COLLECTIVE RHEFDIA/DIA WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 02 LIBREVILLE 000504
SIPDIS
DEPARTMENT FOR AF/C FOR LISA KORTE
E.O. 12958: N/A
TAGS: EPET ENRG EIND TPHY GB
SUBJECT: GABON: U.S. OIL COMPANY SELLS ASSETS DUE TO OIL
SECTOR TRENDS
LIBREVILLE 00000504 001.2 OF 002
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PLEASE CANCEL LIBREVILLE 504 CABLE WAS SEENT IN ERROR
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LIBREVILLE 00000504 002 OF 002
Perenco has been aggressively developing new reservoirs, and
this new acquisition is in line with their recent expansions,
including the Loche East Field site in 2007. Its partnership
with the Gabonese Government is strong, as it is the gas
provider to the power plants in Libreville and Port-Gentil,
which results in approximately 680,000 cubic meters of gas
per day used. Perenco also works closely with Total Gabon.
--------------
VAALCO'S PAYOFF
--------------
9. (C) Another U.S. company, Vaalco, is staying in Gabon.
It has invested significantly in exploratory drilling both
offshore and onshore in Gabon, and despite setbacks, recently
discovered a successful development well expected to increase
its production significantly. In 2008, Vaalco invested $14.9
million in exploration, spending $2.5 million alone on
unsuccessful Gabonese prospects. Undeterred, Vaalco
allocated additional funds in early 2009 for more exploratory
drilling in Mutamba, which is a promising onshore
development, as well as a new prospect offshore. Its methods
have reaped recent rewards, with a successful discovery in
late 2008 in Ebouri field which started production in April
2009. The new well set a production record for the company,
with 24,993 bpd from the Etame Marin block, a statistic which
is NOW the average for the site.
--------------
COMMENT
--------------
10. (SBU) Gabon's oil sector has languished due to
overexploitation and new technological needs, but Vaalco's
new wells indicate that persistence and willingness to
explore additional sits could have a long-term payoff for
U.S. companies. Economic diversification is high on the new
President's agenda, but encouraging new investment in the oil
sector will remain a critical priority as he attempts to put
Gabon back on sound economic ground.
REDDICK
SIPDIS
DEPARTMENT FOR AF/C FOR LISA KORTE
E.O. 12958: N/A
TAGS: EPET ENRG EIND TPHY GB
SUBJECT: GABON: U.S. OIL COMPANY SELLS ASSETS DUE TO OIL
SECTOR TRENDS
LIBREVILLE 00000504 001.2 OF 002
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx
PLEASE CANCEL LIBREVILLE 504 CABLE WAS SEENT IN ERROR
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx
LIBREVILLE 00000504 002 OF 002
Perenco has been aggressively developing new reservoirs, and
this new acquisition is in line with their recent expansions,
including the Loche East Field site in 2007. Its partnership
with the Gabonese Government is strong, as it is the gas
provider to the power plants in Libreville and Port-Gentil,
which results in approximately 680,000 cubic meters of gas
per day used. Perenco also works closely with Total Gabon.
--------------
VAALCO'S PAYOFF
--------------
9. (C) Another U.S. company, Vaalco, is staying in Gabon.
It has invested significantly in exploratory drilling both
offshore and onshore in Gabon, and despite setbacks, recently
discovered a successful development well expected to increase
its production significantly. In 2008, Vaalco invested $14.9
million in exploration, spending $2.5 million alone on
unsuccessful Gabonese prospects. Undeterred, Vaalco
allocated additional funds in early 2009 for more exploratory
drilling in Mutamba, which is a promising onshore
development, as well as a new prospect offshore. Its methods
have reaped recent rewards, with a successful discovery in
late 2008 in Ebouri field which started production in April
2009. The new well set a production record for the company,
with 24,993 bpd from the Etame Marin block, a statistic which
is NOW the average for the site.
--------------
COMMENT
--------------
10. (SBU) Gabon's oil sector has languished due to
overexploitation and new technological needs, but Vaalco's
new wells indicate that persistence and willingness to
explore additional sits could have a long-term payoff for
U.S. companies. Economic diversification is high on the new
President's agenda, but encouraging new investment in the oil
sector will remain a critical priority as he attempts to put
Gabon back on sound economic ground.
REDDICK