Gabon : What can be done to allow a better distribution of the fuel ?

25 Juin 2015

 By Antoine Nkolo  Lawson

 LIBREVILLE, June  25 (Infosplusgabon) -  Daily Union reports  today  that in  recent weeks, the fuel supply is difficult in Libreville and inside the country. Several companies are stigmatized:  Gabon Marketing, Petro Gabon, Oilybia  and Engen. The grant supported by the Gabonese government does not seem to improve the situation. The release of the fuel sector could complicate the situation.

 But the state also has trouble paying the subsidy that would allow better distribution of the fuel. The Gabonese storage company for petroleum products (SGEPP) said that the problem is not n at SOGARA as boat trips between Libreville and Port-Gentil goes well. For Oilybia, we must liberalize the sector because the subsidy is paralyzing the sector. Angola has liberalized fuel prices and Nigeria is about to do so.

 Jean Baptiste Bikalou, CEO of Petro Gabon, says that  the  available capacity can remedy the deficiency in the distribution but not to ensure a steady supply.  The Gabonese government faces the  increasing  subsidy that has tripled over the last 8 years, from 60 billion CFA francs in 2005 and 120 billion in 2011; and finally to 181 billion in 2012 to  227 billion CFA francs  in 2013.

Pressures are greatest in Libreville where most   of the population  is  living.

What has been done?

 Gabon, one of the oil and gas producing nations of Africa is coming more alive and buoyant in its effort to become a premier producer in the continent. So far, the country has shown seriousness to become a top producing nation and has instituted helpful decrees to commercialize the State’s involvement in the exploration and production of hydrocarbon.

Under the leadership of Ali Bongo Ondimba, the State established a national oil company called Société Nationale des Hydrocarbures du Gabon (SNHG).  As the youngest national oil company in Africa – Gabon National Oil Company (also known as SNHG) has made some remarkable achievements. Notable among them is the commercial lifting of its first cargo of Total Gabon Terminal of about 650,000 barrels of oil (Rabi Blend Crude) in December 2012 at the economic city of Port Gentil.  That was the first time the State was involved in such venture.

 Some of the functions of Gabon National Oil Company are : To hold, manage and take participations, of any nature whatsoever on behalf of the State, directly or indirectly in all activities related to research, exploration, production, distribution, transportation , storage, marketing, refining and all activities directly related to the transactions referred to above.

 But also to  hold the state participation in oil and gas fields and in the capital of companies holding conventions of establishment and production sharing contracts;- To ensure the marketing, import, export and distribution of all or part of the extracted products of hydrocarbon and industrial facilities for treatment and processing of hydrocarbons; (With various sources and Milko Binza Moussirou).

FIN/INFOSPLUSGABON/APM/GABON 2015

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