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Gabon: oil royalties, cost oil and taxes under the 2019 Hydrocarbons Code

Last checked: 20 October 2026 · Levies by country

Gabon's oil sector runs under Law No. 002/2019 of 16 July 2019 1. Producers pay a proportional mining royalty, known as the RMP, and a surface rental among other levies 1. As reported by Gabonreview, the crude royalty is negotiated between 7% and 15% in the conventional zone and between 5% and 12% in deep and very deep offshore 4. Under production sharing, handing over the State's share of production discharges company tax 1. Gabon produced 75,925,651 barrels in 2022 3.
Main law
Law No. 002/2019 of 16 July 2019 on the hydrocarbons sector 1
Published
Journal Officiel No. 27 Ter of 22 July 2019 1
Royalty on crude, conventional zone
7% to 15%, negotiated 4
Royalty on crude, deep and very deep offshore
5% to 12%, negotiated 4
Cost recovery limit, oil
70% conventional zone, 75% offshore 4
State stake in an operator
Up to 10%, at market terms, Article 5 1
Crude production, 2022
75,925,651 barrels 3
Extractive revenue, 2022
1,570 billion FCFA, of which 1,467 billion FCFA from hydrocarbons 3

The 2019 Hydrocarbons Code

Law No. 002/2019 of 16 July 2019 regulates the hydrocarbons sector in Gabon. It was published in the Journal Officiel No. 27 Ter of 22 July 2019 1.

Article 39 lists the contract types. They include the exploration and production sharing contract (Article 61) and the exploitation and production sharing contract (Article 66). Model contracts are set by ministerial order (Article 43) 1.

The law makes hydrocarbon resources the exclusive property of the State and provides for a Ministry of Hydrocarbons, a regulatory authority and a national operator, according to the International Energy Agency 2.

Royalty

Article 189 lists the levies due, including the proportional mining royalty (RMP) and the surface rental 1. The law text does not set the RMP rates by zone 1.

As reported by Anne-Sophie Laborieux of Gabonreview on 11 August 2019, the RMP is negotiated between the operator and the State within the ranges below 4.

Article 104 lets operators of marginal and mature fields negotiate the RMP rate freely. It grants those fields reduced PID and PIH provisions and reduced signature and production bonuses 1.

Product and zoneRMP range
Oil, conventional zone 47% to 15% 4
Oil, deep and very deep offshore 45% to 12% 4
Gas, conventional zone 45% to 10% 4
Gas, deep and very deep offshore 42% to 8% 4

Cost oil, profit oil and company tax

Article 166 refers to a cost recovery limit set in the production sharing contract. Article 9 defines the R factor method for sharing profit oil 1.

Gabonreview reported that cost recovery for oil in the conventional zone rose from 65% under the 2014 code to 70%, and stayed at 75% offshore. Gas cost recovery reaches 80% onshore and 90% offshore 4.

Article 194 says company tax is paid by handing over the State's share of production, and that this discharges the tax 1. Gabonreview reported that the 2014 code's company tax of 35% of profit oil was removed 4.

State participation and other charges

Article 5 caps the State's stake at 10% of the capital of an operator holding or seeking an exclusive development and production authorization. The stake is bought at market terms 1.

The IEA summary says the national operator may take up to 15% in production sharing contracts, at market conditions 2. Gabonreview identified the national operator as Gabon Oil Company 4.

Crude sold to the domestic market carries a 15% discount off the official selling price (Article 110) 1. Transfers of petroleum rights carry a 3% registration duty (Article 196) 1.

Gabon EITI figures for 2022

The Gabon 2022 EITI report was signed on 31 July 2024 by the Independent Administrator, Moore Insight 3. It links the rise in Treasury (DGCPT) receipts to a 78% rise in the RMP on oil 3.

Item, 2022Figure
Reconciled crude production 375,925,651 barrels 3
Total extractive revenue 31,570 billion FCFA 3
Hydrocarbon revenue 31,467 billion FCFA, 93% 3
Collected by DGCPT 3642 billion FCFA 3
Collected by DGH 3420 billion FCFA 3
Collected by DGI 3400 billion FCFA 3
Net cash reconciliation gap 3(15.74) billion FCFA, (1.46%) 3

Common questions

What royalty does Gabon charge on crude oil?

Gabonreview reported that the RMP on oil is negotiated between 7% and 15% in the conventional zone and between 5% and 12% in deep and very deep offshore 4. Marginal and mature fields may negotiate the rate freely 1.

Do oil companies in Gabon pay corporate tax?

Under Article 194 of the 2019 law, company tax is paid by handing over the State's share of production, which discharges the tax 1.

How much can the Gabonese State own in an oil project?

Article 5 caps the State's stake in an operator at 10%, bought at market terms 1. The national operator may take up to 15% in production sharing contracts 2.

How much oil did Gabon produce in 2022?

The 2022 EITI report gives reconciled production of 75,925,651 barrels 3.

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Sources

  1. FAOLEX: Loi n°002/2019 du 16 juillet 2019 portant reglementation du secteur des hydrocarbures en Republique Gabonaise (Journal Officiel, 22 July 2019)
  2. International Energy Agency: Law n° 002/2019 regulating the sector of hydrocarbons in the Gabonese Republic (updated 3 May 2022)
  3. ITIE Gabon, Moore Insight: Rapport ITIE Gabon 2022 (31 July 2024)
  4. Gabonreview, Anne-Sophie Laborieux: Nouveau code des hydrocarbures, decryptage des mesures phares (11 August 2019)

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