African Energy Chamber (AEC) Urges Ivory Coast To Continue Being A Home Of Oil & Gas (O&G) Investment – Africa.com
Driven by a solid regulatory framework, attractive fiscal conditions and innovative partnerships, Côte d’Ivoire is becoming a powerhouse in the West African oil and gas industry. The country’s large hydrocarbon reserves and progressive policies have attracted investment from leading energy companies, cementing its position as a regional center for energy production and exploration. African Energy Chamber (AEC) (www.EnergyChamber.org) praised Côte d’Ivoire’s efforts to create an environment in which oil companies can thrive.
This week, AEC will participate in the SIREXE 2024 conference in Abidjan. Led by Executive Chairman NJ Ayuk, the Chamber works with global services companies such as Halliburton, Africa Global Logistics, Sahara Group and SLB to encourage them to prioritize expansion and innovation. The African Economic Community is committed to supporting Côte d’Ivoire’s initiatives to reduce energy poverty, promote local content and promote economic development. As the country continues to expand its role in the regional oil and gas sector, the ASEAN Economic Community has stressed the importance of ensuring that the energy transition includes oil. Industry stakeholders must advocate for a just transition, recognizing the continued importance of oil in Africa’s energy future while transitioning to more sustainable energy sources.
Côte d’Ivoire’s strong policies have laid the foundation for oil companies to promote large-scale projects. Notably, the Baleine field, led by Eni and national oil company Petroci, is a prime example of combining innovation with efficient governance. The field currently produces more than 22,000 barrels per day (bpd) and will be significantly expanded. As Africa’s first net-zero (Scope 1 and 2) hydrocarbons project, the project is progressing with the arrival of critical infrastructure (Petrojarl Kong FPSO and Yamoussoukro FSO) expected to increase production to 60,000 b/d, and added 70 million cubic feet of natural gas in 2017. End of 2024. The project features the continent’s first net-zero FPSO. This sustainable approach is exactly what the continent needs. Companies like Eni are using low-carbon solutions not just for operations but to prioritize decarbonization. This is what sets them apart. Petroci’s collaboration on this project highlights its key role in advancing Côte d’Ivoire’s energy goals.
In addition to the Baleine field, Eni also made a major discovery in March 2024 in the C1-205 block, the Calao field, which contains an estimated 1.5 billion barrels of oil. The discovery is expected to generate significant revenue and create more than 8,000 jobs. Côte d’Ivoire plans to start developing the Kalaw oil field by 2026 to strengthen the country’s energy security and economic growth.
While the project is progressing, Côte d’Ivoire is also strengthening its local content policy. The government recently approved in principle the National Upstream Local Content Policy, which aims to reduce dependence on foreign expertise by building domestic capabilities. The policy, currently under consultation across all regions, reflects the country’s commitment to promoting economic sovereignty and strengthening its energy sector. As the voice of Africa’s energy industry, the Economic Commission for Africa applauded governments’ efforts to advance localization policies, emphasizing the need for oil operators to increase local hiring, training and contracting.
The country also strengthens its position through international partnerships. In August 2024, the Ministry of Mines, Petroleum and Energy of Côte d’Ivoire signed a production sharing agreement (PSA) for four offshore blocks with Eni, committing to invest US$80 million in exploration within three years. Likewise, onshore exploration has received a boost as the ministry signed an agreement with Elephant Petroleum for three blocks, further diversifying Côte d’Ivoire’s energy portfolio and unlocking onshore hydrocarbon potential.
Exploration activities have uncovered significant mineral deposits across the country, and key international partnerships continue to drive growth in Côte d’Ivoire’s oil and gas industry. In March 2024, Vaalco Energy acquired a 27.39% stake in the Baobab oil field through the acquisition of Svenska Petroleum Exploration, worth US$66.5 million. The Baobab field, located offshore Côte d’Ivoire, is expected to add significant production capacity to Vaalco’s operations. Similarly, in November 2023, Ice Oil & Gas signed a PSA with Petroci for the CI-705 offshore block to further advance exploration in the Grand Lahou area and committed to investing US$40 million over the next seven years. To further strengthen its energy footprint, Murphy Oil in June 2023 signed production sharing contracts for five blocks in Côte d’Ivoire, covering both shallow and deepwater areas. The company’s activities include the development of the Paon deepwater gas and light oil field in Block CI-103 and the evaluation of the potential of previous drilling in Blocks CI-531 and CI-709.
Côte d’Ivoire’s efforts to position itself as a regional oil and gas hub extend beyond production. The ministry has identified 26 blocks available for leasing and is accelerating the certification of reserves in existing blocks. Downstream opportunities also abound, with Petroci leading the way in refining and petrochemicals. especially, Côte d’Ivoire Refining Company Côte d’Ivoire’s National Refinery Company (SIR) plays a central role in meeting the country’s growing energy needs, highlighting the importance of downstream development in supporting long-term energy stability and economic growth.
“Côte d’Ivoire is not only a key player in West Africa’s energy sector; , positioning ourselves as a beacon of sustainable and inclusive growth. “It is vital that we continue to develop these partnerships, invest in infrastructure and ensure that growth benefits the country and the wider continent.”
Distributed by APO Group on behalf of the African Energy Chamber.
