Gabon

Gabon

Adoption of new Hydrocarbon Code to promote oil sector investment

16 Jul 2019

The Hydrocarbon Code (Law No. 002/2019 of 16 July 2019) reduces the State's participation in the capital of oil operating companies from 20% to 10% and increases oil cost recovery cap to 70% and 75% (crude oil); 80 and 90% (natural gas). It also withdraws the corporate income tax (which previously amounted to 35%) and decreases the amount of the commensurate mining royalty. It exempts from tax capital gains resulting from sale of oil interests arising from hydrocarbon contracts. Further, it introduces a renegotiation option in the event of marginal discovery and increases the exclusive authorization periods. Finally, it includes best practices in terms of transparency, good governance and corporate social responsibility.

Nature of measure:
  • Liberalization
  • Facilitation
  • Incentives
Type:
  • Entry and establishment (Ownership and control)
  • Promotion and facilitation (Investment incentives)
Industry:
  • Primary (Mining and quarrying)
Inward FDI:
No
Outward FDI:
No
Sources: