Côte d’Ivoire’s recent discovery is significant in terms of size and commercial opportunities
Investors are keenly studying the West African nation as its economy rebounds and its newly found oil reserves give it the potential to become a top regional producer.
According to the market intelligence firm, Welligence, which focuses on the oil and gas sector, Côte d’Ivoire’s recent discovery is significant in terms of size and commercial opportunities.
Welligence reports that the Italian energy major, Eni, estimates the deep-water find in Baleine “holds 1.5-2 bnbbl of light oil-in-place and 1.8-2.4 Tcf of gas”.
“The new play could reinvigorate interest in Côte d’Ivoire’s Tano Basin. Eni is fast-tracking the development and may sanction Baleine Phase 1 before the end of 2022. This will be Côte d’Ivoire’s first major project in decades. Associated gas production will be piped onshore, where the country has one of the most established gas-to-power markets in the region” states Welligence.
Africa Oil Week (AOW) expects Côte d’Ivoire to be a major area of focus when African and global leaders in the oil and gas sector converge in Cape Town from October 3rd – 7th 2022.
“Africa is the new energy frontier, offering a wide mix of energy solutions which could provide long term relief. This reality is likely to spark increased investment and exploration in coming years, and Côte d’Ivoire is well positioned to benefit” says Paul Sinclair, Vice President of Energy & Director of Government Relations, Africa Oil Week.
States Welligence, “Eni has been successful in creating value from its exploration efforts across Africa. Given the scale of the Baleine development and the company’s 90% stake, we expect the Italian Major will look to reduce its exposure. But the significant capital outlay and entry costs will limit the pool of potential new entrants”.
In addition, the country is experiencing an economic boost with the International Monetary Fund projecting GDP growth at 6.5% in 2022 and 6.4% in 2023. At the same time the ratings agency Fitch upgraded the country’s long-term foreign currency issuer default rating from BB to B+ with a stable outlook.
“We look forward to hosting delegates from Côte d’Ivoire and assisting the country partner with leading stakeholders in the sector. Interest in Africa’s energy potential is at an all-time high” says Paul Sinclair, Vice President of Energy & Director of Government Relations, Africa Oil Week.
With the European Commission’s plan to reduce demand for Russian gas by two-thirds in 2022 and make Europe independent from Russian fossil fuels by 2030, Africa’s energy solutions are increasingly viable.
Head of African Futures & Innovation at the Institute for Security Studies, Jakkie Cilliers, recently wrote: “Constraints on Russian oil and gas will inevitably ignite the search for new supplies in Africa, the most unexplored region globally”.
AOW will be hosted alongside the Green Energy Africa Summit at the same time and venue.
“There are untapped oil and gas reserves in Africa, as well as a host of green energy solutions, that are being explored to meet the continent’s demand,” says Paul Sinclair, Vice President of Energy & Director of Government Relations, Africa Oil Week.
“Côte d’Ivoire is an excellent example of the potential the continent has to provide future energy solutions” says Paul Sinclair, Vice President of Energy & Director of Government Relations, Africa Oil Week.