Petrobras has signed production-sharing contracts with the Government of Ivory Coast and national oil company PETROCI Holding covering eight offshore exploratory blocks, expanding the Brazilian company’s presence in West Africa and adding further momentum to Ivory Coast’s upstream ambitions.
The agreements, signed in Abidjan on September 17, cover blocks CI-513, CI-600, CI-601, CI-602, CI-603, CI-605, CI-701 and CI-702. Petrobras, through its wholly owned subsidiary Petrobras Netherlands B.V., will operate the blocks with a 90% interest, while PETROCI will retain 10%.
The African Energy Chamber (AEC) has been engaging with Ivory Coast on the country’s upstream expansion and investment outlook. During a high-level visit to Abidjan in June, the Chamber held discussions with Minister of Mines, Petroleum and Energy Mamadou Sangafowa Coulibaly on upstream expansion, drilling campaigns and efforts to strengthen investment in the sector.
Against that backdrop, the Petrobras agreements provide a fresh example of the international capital Ivory Coast is seeking to attract into its offshore industry. The eight blocks give Petrobras access to additional acreage along a highly prospective part of West Africa’s offshore margin, while giving Ivory Coast another major international operator with deepwater exploration experience.
The move also comes as Ivory Coast’s oil and gas sector gains prominence through developments including Eni’s Baleine project. The field is currently producing more than 57,000 barrels of oil and 78 million cubic feet of gas per day, with its third phase expected to lift output to 150,000 barrels of oil and 200 million cubic feet of gas per day. The expanding development and exploration program is creating opportunities for drilling contractors, engineering companies, logistics providers and other businesses across the energy value chain.
For Petrobras, the agreements form part of a broader push to replenish reserves through exploration outside Brazil. The company has been expanding its interest in African opportunities, with its chief executive previously telling Reuters that Africa is expected to become Petrobras’ main exploration region outside Brazil. In August, the company also entered negotiations for four offshore exploration blocks in Ghana’s Keta Basin.
“Petrobras’ decision to commit to eight offshore blocks is a strong vote of confidence in Ivory Coast’s upstream potential and in the country’s ability to attract serious, long-term investment,” says NJ Ayuk, Executive Chairman of the AEC. “Africa needs more exploration, more investment and more projects that translate natural resources into jobs, revenues, infrastructure and reliable energy. Ivory Coast is demonstrating that a competitive upstream sector can attract global energy companies while creating opportunities for African businesses to participate in the value chain.”
For Ivory Coast, Petrobras’ entry into eight additional offshore blocks strengthens the country’s exploration portfolio at a time when competition for upstream investment across Africa is intensifying. The development also reinforces the case for continued investment in exploration and for policies that enable international operators and African companies to participate together in the continent’s energy growth.
