Arab Today, arab today gabon makes rare challenge to china over oil practices
Last Updated : GMT 05:55:37
Arab Today, arab today
Arab Today, arab today

Gabon makes rare challenge to China over oil practices

Arab Today, arab today

Arab Today, arab today Gabon makes rare challenge to China over oil practices

Libreville - AFP

Gabon has taken the exceptional step of withdrawing the right of Addax Petroleum, a subsidiary of Chinese oil giant Sinopec, to exploit an oilfield, raising concerns over possible repercussions on the business climate. Production at the southwestern Obangue oilfield, totalling 9,000 barrels per day, has been transferred since the end of last year from Addax to the new state-run Gabon Oil Company (GOC), set up in 2011. Officially, the Chinese firm is being sanctioned for failing to meet \"contractual obligations\". The state\'s complaints against Addax include \"bad management\", \"instances of corruption,\" \"shortfalls in the respect of the environment\" and dodging taxes on oil exports. \"After several months of fruitless negotiations ... we decided definitively to withdraw the Obangue field from Addax Petroleum,\" Oil Minister Etienne Ngoubou recently told AFP. The incident is the first of its kind in Gabon and such measures against well-established firms such as Addax, which has operated in the central African country since 1996 and is the fourth oil producer there, are rare worldwide. Since it was bought by Sinopec in 2009, Addax has been exploiting five oil deposits on a basis of shared production with the Gabonese state, amounting to 23,000 barrels per day. Ngoubou also accused Addax of \"unilaterally shutting down\" the Obangue field after its rights were withdrawn, forcing the state to get facilities working again. The GOC has been pumping oil since January 1. The Sinopec subsidiary has responded by accusing Gabon of undue harassment and has taken the dispute to the International Chamber of Commerce in Paris. No date has been set for the court ruling. \"We challenge the requisition and reject all the accusations levelled against us,\" said Hugues-Gastien Matsahanga, communications director of Addax Gabon. \"Addax Petroleum has never been the object of a conviction for the slightest failing in its fiscal, technical and environmental obligations.\" Addax states that it wants to go on working in Gabon, which accounts for between 15 and 20 percent of its global production, although the oil minister has threatened to withdraw a second permit for the Tsiengui oilfield, also in the southwest, \"if they (the firm) don\'t make any efforts\" within 15 months. Gabon\'s inflexible position has raised concerns among oil sector experts that the climate may become more hostile for a country where production has declined by 30 percent since a peak in 1997 and now oscillates between 220,000 and 240,000 barrels a day. \"We should never have reached this point, above all with an operator like China, which invests so much here, which builds roads,\" an oil industry analyst told AFP. \"What message does this send to investors?\" The dispute over the Obangue oilfield coincides with a reform of the petroleum sector aimed particularly at giving the new national company more direct control of resources and reinforcing the role played by Gabonese sub-contractors. President Ali Bongo Ondimba has himself announced that the GOC should enable the state \"to have mastery over the whole chain in the oil industry, from prospection to production, even to marketing.\" \"Via the GOC, the state means to become more involved in the oil sector,\" one oil company executive said. \"And it is certain that it plans to issue a certain number of messages that break with the past,\" he added, referring to the days when the authorities turned a blind eye to unorthodox fiscal and environmental measures. \"We\'re not saying that contracts are too favourable to oil companies, but that unfortunately the benefit to the Gabonese economy is too slim and that (the rules) have rarely been applied,\" minister Ngoubou said. With no major oil discoveries in recent years, the Gabonese state plans to issue this month a series of licences for deep and very deep offshore exploration, counting on major finds in the Atlantic Ocean.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gabon makes rare challenge to china over oil practices Arab Today, arab today gabon makes rare challenge to china over oil practices

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Merna Waleed praises her work with Soad Hosni

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:12 2017 Tuesday ,21 March

Donia Abdel Aziz participates in "Game of Silence"

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:38 2017 Friday ,24 March

Pass health bill Friday or he'll move on

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday