Côte d'Ivoire: The government signs 03 Production Sharing Contracts with US group Elephant Oil

July 30, 2024 marks an important milestone for the Ivorian oil industry. In Abidjan, three Production Sharing Contracts (PSCs) were signed between the Ivorian government, represented by Mamadou Sangafowa-Coulibaly, Minister of Mines, Petroleum and Energy, and Matthew Lofgran, Managing Director of US-based Elephant Oil. This signature opens a new era for onshore oil exploration in the Ivorian sedimentary basin.

Under the presidency of His Excellency Alassane Ouattara, Côte d'Ivoire is experiencing a significant revival in its extractive sector. The country has recently celebrated world-class discoveries, such as the Baleine deposit in 2021 and the Calao deposit early this year. The launch of the Salon International des Ressources Extractives et Énergétiques (SIREXE 2024) on July 1 testifies to the government's commitment to revitalizing this strategic sector. The new CPPs cover onshore blocks CI-520, CI-521 and CI-522, areas of particular importance to Côte d'Ivoire.

Oil exploration in Côte d'Ivoire began in the 1950s with the discovery of bitumen in the Eboïnda region. To date, most significant discoveries have been made in the deep waters of the eastern part of the sedimentary basin. However, the onshore blocks, where exploration has begun, have yet to reveal their full potential.

"After the numerous offshore discoveries, this new partnership with Elephant Oil will enable us to effectively relaunch the search for onshore hydrocarbons. I congratulate Elephant Oil on its commitment to us," said Sangafowa-Coulibaly.

Elephant Oil, with its experience in exploring onshore oil blocks, is bringing its expertise to Côte d'Ivoire. Minister Sangafowa-Coulibaly underlined the beneficial shares for the Ivorian party, in line with President Ouattara's vision: 52.5% of the profits will go to the Ivorian state. The remaining 47.5% will be divided between Elephant Oil (80%) and PETROCI Holding (20%).

"Elephant Oil believes in Côte d'Ivoire. We have obtained authorization to sign these contracts in July 2022. Although the process has taken time, I am convinced that this partnership will be fruitful," said Sangafowa-Coulibaly.

PETROCI Holding plays a key role in providing reliable data and high-level technical support. This support has enabled Elephant Oil to select the most promising blocks for exploration. "To Elephant Oil, I say AKWABA to you again. I am certain that your presence will be crowned with success", added Sangafowa-Coulibaly.

Matthew Lofgran, eager to get off to a fast start, recognized Côte d'Ivoire's potential and pledged to create many jobs in line with the local content law. "We will work to create many jobs as the President of the Republic wants," he announced.

The Director General of Hydrocarbons, Bienvenu Esse, recalled the successful CPP negotiations, concluded in February and March 2022. The terms include three exploration periods over a total of seven years, and a distribution of profits favorable to the Ivorian state.

The signing of the PPCs with Elephant Oil represents a major step forward for onshore oil exploration in Côte d'Ivoire. Under the visionary leadership of President Ouattara and thanks to strategic partnerships, Côte d'Ivoire is well placed to fully exploit its oil and gas potential, contributing to its economic and energy development.

The relaunch of onshore exploration marks a return to basics and paves the way for major new discoveries that will strengthen Côte d'Ivoire's position in the global oil industry.