Industry Trend Analysis - In Need Of A Major Discovery - FEB 2018

BMI View: Cote d ' Ivoire holds great oil potential and attractive investment terms, though after disappointing exploration results in 2017 , a major discovery is needed to refocus operators on the county. Much of this will depend on the risk appetite of the oil majors over 2018.

Cote d'Ivoire has one of the more attractive fiscal and regulatory environments in West Africa and this is working to attract foreign oil companies. Following the International Tribunal of the Law of the Sea (ITLOS) ruling on the maritime border shared by Cote d'Ivoire and Ghana in September, the offshore is now clearly demarcated removing previous uncertainties. Since the ruling, Tullow Oil, operator of the Jubilee and TEN fields in Ghana, has signed four more production sharing contracts (PSCs) with the Ivorian government.

All four PSCs are onshore along the coast line, with Tullow targeting the lower risk of a proven petroleum system and lower cost of an onshore development. Both these factors will also allow for a relatively fast-track to production if commercial discoveries are realised.

Competitive Fiscal Environment
Tax & Approx. PSC Government Take, %
Source: EY, BMI

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