With Gabon, Tullow ensures output

LONDON, Oct. 8 (UPI) -- Getting the nod from the Gabonese government for oil field development will help stimulate West African operations, Tullow Oil said.

Tullow, which has headquarters in London, takes a minority stake in the Onal complex of oil fields, gets a contract extension until 2035 and gains access to areas of proven oil capacity following agreements with the government of Gabon.

Through the agreement, Tullow said it can maintain its full-year production guidance for West Africa of between 66,000 and 70,000 barrels of oil per day.

"We have had operations in Gabon for over 10 years and I look forward to investing further in Gabon over the coming decades," Tullow Chief Executive Officer Adian Heavey said in a statement. "Our West African non-operated portfolio, which has Gabon at its heart, continues to perform exceptionally well, providing important and stable production for the group."

Reserves off the coast of Gabon are similar to those in Brazil in that they're located beneath a thick layer of submarine salt. Gabon's geological similarities to Brazil raised hopes for oil production among energy explorers, but so far the region has turned up mostly natural gas.

Italian energy company Eni and Australian major Woodside Petroleum are among the more active players in a re-emerging Gabonese oil sector. Oil production peaked in Gabon in the late 1990s

Tullow in early 2015 announced plans to streamline spending in an effort to cope with the weakened energy market.

Tullow holds 14 licenses in Gabon, producing 10,700 barrels of oil equivalent per day in 2014.