(Ecofin Agency) - After two decades, the Organization of Petroleum Exporting Countries (OPEC) has finally approved Gabon's application to return to the group.This is coming after the meeting of the 13-member cartel on Thursday in Vienna, where the group failed again to arrive at a deal to cut production.

Gabon’s request is to take effective from July 1, 2016, increasing the group’s membership to 14 countries, after Indonesia's decision to return to OPEC in 2015, IBTimes reports.The country became a member of OPEC in 1975 and left in 1995 due to the group's failure to approve its request for lower yearly contributions in accordance with its small output.

Gabon produces 200,000 bpd and its production is on a downward trend. It has also reduced its budget twice as a result of declining crude sales. In 2015, the government inaugurated an offshore licensing round as a way of increasing exploration in the country.Like Nigeria, the country relies on petroleum for half of its gross domestic product (GDP) and three quarters of its exports. The country is considering more budget cuts this year and President Ali Bongo Ondimba is hoping that it will not be implemented.

Ever since Gabon (which is the fifth-largest producer of oil in sub-Saharan Africa) left OPEC in 1995, production has witnessed a 28% drop. The country expects production to stabilize to approximately 250,000 bpd in 2016 and 2017.

Anita Fatunji