Oil Deposits:
• Offshore
It is believed that The Gambia has good prospectivity
for hydrocarbons (Deepwater PPL Gambia). The area marks
the northern extent of the Casamance-Bissau sub-basin
which forms part of the Mauritania - Senegal - Gambia
- Guinea Bissau coastal basin. It is characterised by
prominent halokinetic strata deformation and there are
proven petroleum systems in the area.
• Upstream
Although a non-oil producing nation, The Gambia has
legislation, the Petroleum Act (2004), on the upstream
petroleum sector. The objective of the Act is to ensure
the efficient administration and management of the country’s
hydrocarbon resources for the maximum benefit of The
Gambia people. There are a number of petroleum companies
involved in the retail of liquid fuels for vehicles
via fuelling stations.
•
Downstream
All petroleum products consumed in The Gambia are imported.
Unlike the upstream, the downstream lacks a coherent
legislation. Government’s interest is revenue bias and
DOSFEA and the Customs Department play major roles in
this aspect.
The Gambia National Petroleum Company (GNPC) is a recent
entrant into the petroleum scene. The company is mandated
to participate in the upstream and downstream operations
in the sub-sector sector on the same terms as any oil
company.
Imports & Consumption:
The Gambia is heavily dependent on imports to meet its
petroleum requirements. Petroleum products consumed
in the Gambia is all imported. It is the second most
important source of energy in the country, after fuel
wood, accounting for about 17% of total primary energy
needs according to the 2004 energy balance. The petroleum
requirements of the country consist of gasoline (regular
and premium), kerosene, diesel oil (gasoil), LPG and
jet fuel.
The consumption of liquid products grew from 86,974
metric tons in 2000 to 108,470 metric tons in 2004.
Only 5% of imported kerosene is use in households as
a source of lighting. There has been a steady growth
in the demand for all fuels including Heavy Fuel Oil,
gasoline and diesel. The main petroleum consuming sectors
are electricity generation, transport, and construction.
The Gambia is heavily dependent on imports to meet its
requirements of petroleum derivatives, including the
importation of diesel fuel for generating electricity.
In 2004 The Gambia imported 113 million litres of petroleum
products.
Petroleum products are used for transportation (diesel
and petrol), some diesel and gasoline is also used in
privately own generation and some diesel is use for
power generation at the various power stations by the
utility company. HFO is used almost exclusively by the
national utility for power generation.
The main petroleum products of direct household energy
use are kerosene and LPG. Kerosene has been used as
household energy for lighting over many years. Its share
of household energy balance is quite small with bulk
of the fuel is consumed by rural households. Kerosene
is a subsidized fuel. LPG is also a subsidized fuel
as there are no import taxes on this energy source so
as to encourage its use. Greater percentage of this
fuel is consumed in the urban area.
The Gambia, like most oil importing countries, is susceptible
to any exogenous shocks such as price increases in world
oil prices. Any increases in external costs translate
directly to higher importation costs and as a result
higher prices at the pump. Taking into account Government
taxes, any further increase in world oil price will
lead to an erosion of the gains in the country’s development
efforts.
Licenses Issued:
Progressive
Africans - 27 Sept. -2006
"The Government of Gambia issued two licenses
to Buried Hill Energy a Canadian company for the exploration
and production of oil and gas prospect in the offshore
areas. President Yahya Jammeh, who is responsible
for energy signed the licenses while Roger Haines
signed on behalf of Buried Hill Energy.
Speaking on behalf of President Jammeh shortly after
the signing ceremony held at Basse, Edward Singhateh
SOS for Forestry and Environment said the licenses
which have been signed is a petroleum exploration
and production licenses for two blocks namely A1 and
A4 for the offshore exploration and drilling of wells
and most likely the final production of petroleum
in Gambia......" |
