Shell returns to Gabon after decade-long absence

Shell’s re-entry into Gabon’s oil sector marks a significant milestone for the country’s energy landscape. A decade after withdrawing from the West African nation, the Anglo-Dutch energy giant is set to resume operations in Gabon’s sedimentary basins, just as Libreville intensifies efforts to halt the steady decline in hydrocarbon output. The move, announced amid sweeping reforms following the recent political transition, signals a clear message to global investors about Gabon’s renewed openness to foreign capital.

In 2016, Shell exited Gabon by selling its onshore assets to Assala Energy, a subsidiary then owned by Carlyle Group. The multi-hundred-million-dollar transaction reflected the company’s global strategy to prioritize higher-margin projects, particularly in liquefied natural gas and deepwater exploration. That departure left a noticeable gap in Gabon’s oil industry, stripping the country of one of its long-standing operators.

Political momentum reshapes Gabon’s oil sector

The return of Shell coincides with the presidency of Brice Clotaire Oligui Nguema, who assumed office following the August 2023 transition before securing electoral confirmation. In recent months, Gabonese authorities have actively pursued measures to revitalize the upstream sector. Revisions to the hydrocarbons law, renewed licensing rounds, and direct negotiations with major oil companies all aim to reverse a downward trend in production, which has stagnated around 200,000 barrels per day—far below the historic highs of the late 1990s.

The timing of Shell’s comeback is deliberate. After divesting from mature assets it deemed non-strategic, the company is recalibrating its African portfolio. With fewer large onshore discoveries, rising deepwater exploration costs, and a need for medium-term growth, the group is reassessing its footprint. Gabon’s offshore basins, particularly in deepwater and pre-salt plays, now appear more attractive as part of this revised strategy.

Gabon’s declining output demands urgent action

Oil remains Gabon’s economic backbone, contributing over 40% of government revenue and nearly 80% of export earnings. Yet, the gradual depletion of mature fields, coupled with years of cautious investment, has eroded this foundation. Authorities are banking on the return of major operators to reignite exploration and extend the productive life of existing fields.

Several international players have already signaled renewed interest in Gabon. The national oil company, Gabon Oil Company (GOC), is strengthening its role in asset governance as contracts expire or undergo renegotiation. Shell’s potential return could unfold in collaboration with other established operators such as Perenco, TotalEnergies, and BW Energy, all of which have expanded their offshore holdings in recent years.

Shell’s return hinges on unresolved details

While the company’s re-entry is confirmed, key operational aspects remain unclear: the specific blocks involved, timing of investments, financial commitments, and contractual frameworks. Whether Shell targets deepwater or onshore assets will shape the scale of its involvement. A deepwater push could require hundreds of millions in commitments, whereas a focus on mature fields might favor a more conservative, production-optimization approach.

Beyond Shell’s case, Gabon’s ability to convert policy into tangible investments will determine the sector’s trajectory in the coming decade. In a region where Nigeria, Angola, Namibia, and Senegal compete aggressively for foreign oil majors, Libreville’s success hinges on credibility. For the new administration, Shell’s return serves as a critical test of its capacity to revive a once-thriving industry.