Though Ivory Coast currently produces 30,000 barrels per day – owing to the Baleine discovery that was fast-tracked into production last August – additional offshore discoveries and regional pipeline projects signal significant development potential, particularly in deepwater acreage. According to the World Bank, the country’s GDP growth is expected to average around 6.5% between now and 2026, on the back of continued infrastructure investment and the exploitation of recent oil discoveries, as it sets its sights on becoming a major producer in the near-term.
Deepwater Discoveries Expand Reserves
Following several world-class hydrocarbon discoveries, Ivory Coast is expanding its reserves base and attracting upstream investment from leading majors. Italy’s Eni is investing $10 billion toward the development of the offshore Baleine field, set to result in the production of 200,000 barrels of crude oil per day across three phases through 2027. The company is aiming to sanction phase three of the development – which contains up to 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas – by early-2025. Meanwhile, Eni is working on appraisal and development plans for the nearby ultra-deepwater Calao discovery made last March – the second-largest in the country and estimated to hold 1.5 billion barrels of oil equivalent of potential resources.
Juniors Enter the Market
Further underlining the prospectivity of its offshore acreage, Ivory Coast has seen the entry of several junior and independent explorers in recent months. In February 2023, US independent VAALCO Energy acquired stakes in the offshore Baobab field in Block CI-40, with plans to launch a drilling campaign in 2026 to capitalize on the field’s historic production profile and significant upside. Last year, Ivorian explorer ICE Oil & Gas signed a production sharing agreement (PSA) for offshore Block CI-705 for a seven-year exploration period, with a commitment to invest at least $40 million in hydrocarbon exploration, while US independent Murphy Oil signed PSAs for five blocks, spanning shallow to deep water areas.
Africa’s First Net-Zero Field
Ivory Coast is trailblazing environmental stewardship alongside oil and gas development, with the Baleine field development set to be the first net-zero field in Africa. The country is prioritizing the use of decarbonization technologies to reduce its carbon footprint across the extractive sectors, from oil and gas to mining. In April 2023, TotalEnergies entered into a partnership with Canadian mining operator Fortuna Silver to supply the new Séguéla gold mine through a 6 MWp solar photovoltaic power plant, representing the first large-scale solar project at a mine in Ivory Coast. In addition, Ivory Coast is pursuing natural gas within its transition strategy, with the Baleine field also set to produce 200 million cubic feet of gas per year by 2027.
New Regulation Targets Local Capacity
With a view to fostering a favorable environment for oil and gas investment, Ivory Coast is working on building local capacity through new legislation. Notably, the country has implemented a regulation mandating companies in the oil and gas sector to hire 50-90% nationals for upstream activities and 75-95% nationals for downstream activities, where there was previously no requirement. Additionally, all oil and gas companies must submit a local content plan to the Ministry of Hydrocarbons, including a budget for training and local capacity-building activities, as well as provide funding to at least one Ivorian university or training institute. These requirements are relatively standard and demonstrate the country’s evolution into a more sophisticated upstream market, as it intends to translate recent offshore discoveries into long-term employment and skill development opportunities.
Pipelines to Boost Connectivity
Ivory Coast is home to several planned pipeline developments set to facilitate its integration with the wider region. The country is one of 13 African nations through which the planned Morocco-Nigeria Gas Pipeline will run, establishing West Africa as Europe’s premier energy trading partner and providing an export route for future gas production. Meanwhile, the proposed Ghana-Ivory Coast Gas Pipeline would transport gas from Ghana to Ivory Coast, with an MoU already signed to enable pipeline gas trade between the two countries. In recent years, Ivory Coast has also upgraded its state-owned Société ivoirienne de raffinage refinery to enable the production of low-sulfur fuels leveraging new technologies.
