Oil and Gas: Becoming a regional hub
EXPORTING CRUDEOIL SINCE 2002
Cote d'Ivoire became an oil producer in 1980 but did not start exporting crude with quality close to that of North Sea Brent until 2002. Since then, it has been reserved for export, with economic recovery in full swing, the government intends not only to correct past mistakes-in particular, the inefficiency and opacity of technical and financial management--but also to boost this highly strategic sector’s production and revenues. Although oil output fell from 12.3 million barrels in 2011 to 10.7 million in 2012, earnings rose slightly from $345 million to $347 million during the same period. In 2013, the government is counting on deep offshore discoveries, encouraged by those announced by the US company Vanco (in partnership with Russia’s Lukoil and the UK’s Tullow) in December 2011, as well as by France’s Total in April 2013.
The French group’s positive results, obtained near the territorial waters of Ghana, also an oil producer, are encouraging:it proves that Ghana- Tano oil basin stretches to the coast off Cote d-voire. Total, which already has several prospecting licenses in the country, has drilled a 5.000m-deep exploration well in the western part of block Ci-100 that detected a layer of - good quality-oil there. The prospecting license is 60% owned by Total, 25% by the private ivorian company Yam- Petroleum and 15%by the national company. Petroci. The French group, present in Cote d-voire for a very long time, has also decided to invest 80% to 100% of its net earnings, or nearly six billion FCFA, locally to develop and modernize its service stations.
The new frontier: Ultra-Deep
Cote d-voire is not a major oil producer, but ultra-deep offshore technologies and the general boom they give way to, especially in Africa, could boost its capacity. The quest for emergence by 2020 has also determined another government goal:producing 300.000 barrels/day. After the Baobab field started producing in 2005, output reached 70.000 barrels/day, but fell to less than 30.000 barrels/day in 2012. The main reasons are the postponement of investments planned in Blocks Cl-11 and Cl-40 in 2011 and the closure of some wells in Block Cl-26 for maintenance. So for, oil accounts for just 4% of GDP and crude makes up only 15% of the country- total exports. The State- share of oil profits is 14%. Estimated recoverable crude oil reserves were put at 339 million barrels in 2012. The country owns 32 concessions, but no more blocks are available offshore and the drawing up of boundaries currently under way only involves ultra-deep deposits.
Natural gas for electricity
The production of natural gas, under since 1995, allowed Cote d-voire to achieve a spectacular