Ivory Coast is rising as a powerhouse in West Africa’s oil and fuel business, pushed by a strong regulatory framework, enticing fiscal phrases and revolutionary partnerships. House to vital hydrocarbon reserves and progressive insurance policies, the nation has drawn investments from main power corporations, cementing its standing as a regional hub for power manufacturing and exploration. The African Power Chamber (AEC) (www.EnergyChamber.org) applauds Ivory Coast’s efforts in creating an surroundings the place oil corporations can thrive.
This week, the AEC is collaborating on the SIREXE 2024 convention in Abidjan. Led by Government Chairman NJ Ayuk, the chamber engaged with international service corporations reminiscent of Halliburton, Africa International Logistics, Sahara Group and SLB, encouraging them to prioritize growth and innovation. The AEC is dedicated to supporting Ivory Coast’s initiatives to scale back power poverty, promote native content material, and foster financial improvement. Because the nation continues to develop its function within the regional oil and fuel sector, the AEC emphasizes the significance of guaranteeing that the power transition consists of oil. It’s important that business stakeholders advocate for a simply transition that acknowledges the continuing significance of oil in Africa’s power future whereas transitioning to extra sustainable power sources.
Ivory Coast’s sturdy insurance policies have laid the inspiration for oil corporations to drive large-scale tasks. Notably, the Baleine area, spearheaded by Eni and the nation’s nationwide oil firm Petroci, is a chief instance of what’s attainable when innovation meets environment friendly governance. The sphere presently produces over 22,000 barrels per day (bpd) and is about to scale considerably. As Africa’s first net-zero (Scope 1 and a pair of) hydrocarbon venture, the venture is advancing with the arrival of crucial infrastructure – the Petrojarl Kong FPSO and Yamoussoukro FSO – set to spice up manufacturing to 60,000 bpd and add 70 million cubic ft of fuel by the top of 2024. The venture options the continent’s first-ever net-zero FPSO. This sustainable method is what the continent wants. Corporations reminiscent of Eni are utilizing low-carbon options to not solely function however prioritize decarbonization. That is what units them aside. Petroci’s partnership on this venture underscores its pivotal function in driving Ivory Coast’s power ambitions.
Along with the Baleine area, Eni made a major discovery in March 2024 in Block C1-205 – often known as the Calao discover – which is estimated to carry as much as 1.5 billion barrels of oil. This discovery is predicted to generate substantial revenues and create over 8,000 jobs. Ivory Coast plans to start exploiting the Calao area by 2026, strengthening the nation’s power safety and financial progress.
Amid venture developments, Ivory Coast can also be strengthening its native content material insurance policies. The federal government has just lately authorized in precept the Nationwide Upstream Native Content material Coverage, which seeks to scale back dependency on overseas experience by constructing home capability. The coverage is presently present process consultations throughout all areas, reflecting the nation’s dedication to fostering financial sovereignty and strengthening its power sector. Because the voice of the African power sector, the AEC commends the efforts by the federal government to advance native content material coverage, emphasizing the necessity for oil operators to extend native hiring, coaching and contracting.
The nation can also be strengthening its place by way of worldwide partnerships. In August 2024, Ivory Coast’s Ministry of Mines, Petroleum and Power signed manufacturing sharing agreements (PSAs) with Eni for 4 offshore blocks, promising an $80 million funding in exploration over three years. Equally, onshore exploration has seen a lift with PSAs signed between the Ministry and Elephant Oil for 3 blocks, additional diversifying Ivory Coast’s power portfolio and unlocking onshore hydrocarbon potential.
Exploration campaigns have revealed substantial deposits throughout the nation and key worldwide partnerships proceed to advance Ivory Coast’s oil and fuel sector. In March 2024, Vaalco Power acquired a 27.39% stake within the Baobab area by way of its buy of Svenska Petroleum Exploration, valued at $66.5 million. The Baobab area, positioned offshore Ivory Coast, is predicted so as to add substantial capability to Vaalco’s operations. Equally, in November 2023, Ice Oil&Fuel signed a PSA with Petroci for offshore block CI-705, furthering exploration within the Grand Lahou space with a dedication to speculate $40 million within the subsequent seven years. Additional strengthening its power footprint, Murphy Oil signed production-sharing contracts for 5 blocks in Ivory Coast in June 2023, spanning each shallow and deepwater areas. The corporate’s actions embody creating the Paon deep-water fuel and light-weight oil area in block CI-103 and evaluating potential from earlier drilling in blocks CI-531 and CI-709.
Ivory Coast’s efforts to place itself as a regional oil and fuel hub prolong past manufacturing. The Ministry has recognized 26 blocks accessible for leasing and is accelerating certification of reserves in present blocks. Downstream alternatives additionally abound, with Petroci spearheading tasks in refining and petrochemicals. Notably, Société Ivoirienne de Raffinage (SIR), Ivory Coast’s nationwide refining firm, is enjoying a central function in assembly the nation’s rising power calls for, underlining the significance of downstream improvement in supporting long-term power stability and financial progress.
“Ivory Coast is not only a key participant in West Africa’s power sector; it’s a mannequin for what the way forward for African oil and fuel improvement ought to seem like. With its progressive insurance policies, dedication to native content material and willingness to embrace innovation, Ivory Coast is positioning itself as a beacon of sustainable and inclusive progress,” stated Ayuk. “It’s essential to proceed constructing on these partnerships, spend money on infrastructure and be sure that progress advantages the nation and the broader African continent.”
Distributed by APO Group on behalf of African Power Chamber.