The Government of Gabon has reportedly ended the merger project between the Gabonese Refining company (Sogara) and the National Hydrocarbons Company, the Gabon Oil Company (GOC).
The decision of a merger, which has been in progress since 2019, was taken at the Council of Ministers meeting on June 13, 2019, and was chaired by the President of the Republic, Ali Bongo, to save the country’s only oil refinery that has been producing below capacity and running at a loss.
In recent years, Sogara has continued to suffer a drop in the volumes of processed oil. Between 2018 and 2019, volumes processed fell by 13.4% from 779,951 metric tonnes to 675,471 metric tonnes. The sales of refined petroleum products locally and internationally also dropped drastically.
A statement issued by the Gabonese government stated that the merger had been abandoned and it did not state any reason for the change in its earlier decision.
OIL IN GABON
The OPEC-member country is the sixth-largest oil producer on the continent. It has the fifth oil reserve in Africa after Nigeria, Angola, Sudan, South Sudan, Angola and Uganda. Like other oil-producing countries on the continent, it relies heavily on oil for its export revenues.
The Sogara oil refinery is owned by Société Gabonaise de Raffinage (SOGARA). The shareholders in the refinery are Total with 43.84%, the government of Gabon with 25%, Portofino Assets Corporation with 16.99%, Petro Gabon with 11.67% and ENI International with 2.50%.
Located Port-Dentil, Ogooué-Maritime, it has an installed capacity of 21,000 barrels per day. Fuel accounts for 40.6% of its products, diesel oil accounts for 35%, kerosene accounts for 21.&% and gasoline accounts for 10.2% of its production.
Gabon is one of the founding members of the African Petroleum Producers’ Organisation (APPO). Oil prospect in Gabon dates back to the 1930s but the country has only one refinery which is the Sogara refinery.
The Gabon Oil Company works in partnership with the international companies operating in Gabon and it operates the Obangue and Remboue fields.
%20and%20the%20National%20Hydrocarbons%20Company,%20the%20Gabon%20Oil%20Company%20(GOC).The%20decision%20of%20a%20merger,%20which%20has%20been%20in%20progress%20since%202019,%20was%20taken%20at%20the%20Council%20of%20Ministers%20meeting%20on%20June%2013,%202019,%20and%20was%20chaired%20by%20the%20President%20of%20the%20Republic,%20Ali%20Bongo,%20to%20save%20the%20country's%20only%20oil%20refinery%20that%20has%20been%20producing%20below%20capacity%20and%20running%20at%20a%20loss.In%20recent%20years,%20Sogara%20has%20continued%20to%20suffer%20a%20drop%20in%20the%20volumes%20of%20processed%20oil.%20Between%202018%20and%202019,%20volumes%20processed%20fell%20by%2013.4%%20from%20779,951%20metric%20tonnes%20to%20675,471%20metric%20tonnes.%20The%20sales%20of%20refined%20petroleum%20products%20locally%20and%20internationally%20also%20dropped%20drastically.A%20statement%20issued%20by%20the%20Gabonese%20government%20stated%20that%20the%20merger%20had%20been%20abandoned%20and%20it%20did%20not%20state%20any%20reason%20for%20the%20change%20in%20its%20earlier%20decision. h3%20style=text-align:%20center;strongOIL%20IN%20GABON/strong/h3a%20href=https://ibekachikwu.com/wp-content/uploads/2020/07/f4f6c573-a14f-47b0-9d86-c7fc790c247e.jpgimg%20class=size-medium%20wp-image-2166%20aligncenter%20src=https://ibekachikwu.com/wp-content/uploads/2020/07/f4f6c573-a14f-47b0-9d86-c7fc790c247e-300x168.jpg%20alt=%20width=300%20height=168%20//aThe%20OPEC-member%20country%20is%20the%20sixth-largest%20oil%20producer%20on%20the%20continent.%20It%20has%20the%20fifth%20oil%20reserve%20in%20Africa%20after%20Nigeria,%20Angola,%20Sudan,%20South%20Sudan,%20Angola%20and%20Uganda.%20Like%20other%20oil-producing%20countries%20on%20the%20continent,%20it%20relies%20heavily%20on%20oil%20for%20its%20export%20revenues.The%20Sogara%20oil%20refinery%20is%20owned%20by%20Société%20Gabonaise%20de%20Raffinage%20(SOGARA).%20The%20shareholders%20in%20the%20refinery%20are%20Total%20with%2043.84%,%20the%20government%20of%20Gabon%20with%2025%,%20Portofino%20Assets%20Corporation%20with%2016.99%,%20Petro%20Gabon%20with%2011.67%%20and%20ENI%20International%20with%202.50%.Located%20Port-Dentil,%20Ogooué-Maritime,%20it%20has%20an%20installed%20capacity%20of%2021,000%20barrels%20per%20day.%20Fuel%20accounts%20for%2040.6%%20of%20its%20products,%20diesel%20oil%20accounts%20for%2035%,%20kerosene%20accounts%20for%2021.&%%20and%20gasoline%20accounts%20for%2010.2%%20of%20its%20production.Gabon%20is%20one%20of%20the%20founding%20members%20of%20the%20African%20Petroleum%20Producers’%20Organisation%20(APPO).%20Oil%20prospect%20in%20Gabon%20dates%20back%20to%20the%201930s%20but%20the%20country%20has%20only%20one%20refinery%20which%20is%20the%20Sogara%20refinery.The%20Gabon%20Oil%20Company%20works%20in%20partnership%20with%20the%20international%20companies%20operating%20in%20Gabon%20and%20it%20operates%20the%20Obangue%20and%20Remboue%20fields. ){kind=link}