Peer ‘une réussite fondée sur l'une des decisions CU a Mee tet ‘monde, la Controle Thermique d'Azto (CTA) COC Suey SO eet eats 3 d'extension de cette infrastructure en tune unité d cycle combiné. Cotte extension, Cee ce Teg CCE er une ere eee CeO aa Ct a ent Oe orn eee a en aeons scan * dfrique de Vouest Ele contibuera a Cometic ct Coticg Vindépendance énergétque dela Céte OTC od aceon y Tecnu d r GLOBELEQ‘opment Plan the government has also priorsed a number of renewable energy projecs.Oneof theproj- ectsin the pipeline a 2-MW photovoltaic solar plant inthe north that willbe bit through a publ private partnership Inthe private sector, ifca, an voiciandiver- aqricutural commodities company is ooking to develop an independent power project that will en- erate 42 MW from biomass. Palmela Sifea subsidiary, ‘il cole palm ol waste, including wunks, branches and leaves from vile plantations, to use as fue for the project. The estimated €31m facty would require 300,000 tonnes of biomass and expected to come on nein fourth quarter of 2025. Nonetheless, there are anumber of obstaclesto the development renewable offeringsinthe energy eg uiatory framework. The principal hurd the lack of fiscal and legal framework for calculating power tar ifs from renewable energy projects for the privately held power uty, Compagnie Worienne dletricé (Cle) ran encouraging sgn forthe sectorthe gov- ernment trent working onthe finalsle price per ‘ah with the CIE. Te revised power code i ily 10 be passed at some point in 2013 and aso aimsto set) {pa new regulator boy that wil oversee the deve ju opment of focal renewable energy sources. PUSHINUPSTREAMEXPLORATION:Despiteplansto {educe efance on natural gas supplies an increase in upstream ot and gas exploration as part ofa bid to become self-sufficient in energy sourees for power generation & an essential component ofthe govern- iment’ strategy. The MPE has seta crude ol produc- tion target of 200000 bares per day (Bp) by 2018, “Up from is curent 31.286 bpd Accardng to the US Energy Iiformaton Adminstration, CBte duoie ro- duced 53bn cu ft of natural gas in 2011, of which the reat gige tne! alas LS aE Given that only 30% ¢ of te sedimentary ban had been explored as of 2011, theres potential for sgnif= icant commercial rade scoverisintght f raorfind ings in neighbouring Ghana Many oiland gas Feldshave seen drop in output, necessitating increased invest ‘ment tofurtherexpot exiting lds or discovernew ‘ones Lured by the success of Ghana's jubilee fed, a ti of large and junior interational cl companies, inching Tota Lukoil Rialto Energy and Anadarko,have Shapped up exploration blacksinCéte d'wolre over the last wo yours (s08 Mining ana)" => OIL GAS PROJECTS: To supplement natural gassup- piles inthe shor term, the government has pushed head with a liquefied natural gas (LNG) project that wil boost feedstock to powerplants. n March 2013, the Société Nationale dOpéatonsPétroliéesde a Cte hire (Petro) welcomed expressions of interests for setingupa joint venture LNG project. The winning bidder il supply LNG over a 20-year period starting in2015,and opefaea lating storage re-gaiiation nit. thPetroci owning 40% equity nthe projectand ning 60% stake Being hed by the priate Peiroci ha already awarded a contract to Ssipem Tor the bulldng, operating and maintenance of the ternal in receiving, uploading, storing and Consent lo pele arpartaon undertaking the re-gasificaton of LNG. LNG wil be purchasedby Lion Gas Plant, Petrocifoits natural gas distribution network Société hoirienne de Raffinage (GIR) and thermal power plants. The largest source of ddemandisthelectricty sector whichrequred235.2m standard cu ft per day in 2012, followed by IR with 30m standard eu ft per day. Wile the project wil help narow the LNG deft, Céte dvoireneeds some 37bncuftoFLNG per annum to meet current demand. The electricity sector has “unmet demand of 6882m cu fe per day,whereasSIR's_ /reuierents wil ech 1944mcuf per ing to 2013 guts published by Petoc natal gas | Gamandindheleng tem sexpecednetmeoraned. | ath te mirng Sector needing around Sr cu feand | the elect sector oughly 36tm cu withthe a 5 der epg erin ES Petocis scheduled to complete construction of | 385-km pipeline that will transpor etroleuM pr | trom the state-cmmed petroleum company Gest 4 (em om sr nisin Yamowssoulro \ rane by mid. 201.The pipeline wihave ata dies pe Xenon {generation the Ministry of Potoleum and Energy has seta cude ol production target of 200000 bares Te become slfsuficientin tenargy sources for power . er day (Op) by 2018, ca yobs. | SOURCE: Eetyloarmton intenua ENERGY & MINING OVERVIEW, | production as risen otaby in ecant years ‘efneres ae faced with ‘volumes of 750.00 cu metres of petroleum products, per yer, and will alow Cote dvoire to boost exports SEERERIEISERIS, of such products landlocked neighbouring stats ‘cot thes sty tote REFINERY: Asa leading regional eparter oF petole- crude um products, Cte voir’ refine SIR has the sec- ‘ond largest procesingcapacyinthe region at between 75000 and 80000 bp or 3 tonnes per yea, after Nigeria (whose four refineries are operating at less (Canan 50% capaci The feclty's equipped withvacu “am dstilation and hydrocracking units, and has two martime stations that can receive cargoes ranging \ from 80000 9 250.000 tonnes of crude ‘29% of production diesel comprises the largest |.-- share of Ss output with kerosene (238), gas (20%) andheatingol(18%) representing other key products SIR imports the mejor ofits crudesfom Nigeria and uses feedstock from domestic sources, including the Lin, spoir and Baobab elds, respectively. the first half of 2012, production of petroleum products ba won A (ioso refined gas, petrol) saw an aggregate 11209%, year-on-year jump to 1.3m tonnes, up from 610,689 tonnes in 2011, Domestic consumption also rose by 10097%in 2012 toa totalof 722,304 tonnes up trom 359415 tonnes in 2011, SIRs abe to meet comestic demand with 25-30% ofits total production while the = remaining output is destined for export ports of [petoleum products saw 3 98.11% increes8in the frst haf of 2012, rising to 592415 tonnes from 299026 tonnes inthe same period over the previous year. “f WhileSiRhas faced quit sues over the lst ev eralyearsthat have affectedisabilsjto buy crude oi ithas been able to'Sécurs loa fom international banks to fundits purchased In August 2011, therefin ‘ery received @ €481m loan from the Afican Export: Import Bank (eeximbank) to fund crude purchases. £€82.7m from West Afican ABI Group (Banque Alan tique) and Moroccos Groupe Banque Popolie units ChaabiBarkandBangue Cento Populire forthe pur- chase of imported petroleum products capacity of 1.6m cu mettes per year to carry currenta, STOCKAGE & DISTRIBUTION: Gestoci a storage ter- ‘minal operating company that operates under the egal instruction ofthe minister of petroleum and energy as wallas the minster of economy and nance respon, sible for stocking petroleum products forthe country — > Theshoupis875%4heldby multinational energy firms, “Including Agip, BR ExxonMobil Shel Texaco and Total however itis run a a state-owned company owing to, J Gis gavernment’ 12.5% stake, whichis considered part the group's "A shares" and allows for these shares tobe transferrable tothe state Ithasits main storage facility at the Vidi ol terminal st Abidjan port and two ‘other depots at Yamassoukro and Bouake, respective by. MST, held intl by the groups Libya, Shel Total “and Petros the other petoleum productstorage cor- pany with capacity of 80,000 cu metres in two sepa: rate facilites. Petrociis the operator ofa logistics net- work at Vidi termina. ncluding two petroleum product Jetties and 28-4m pipelines connecting the jetties with storagé units at SIR, Gestoci and MSTT. Themainplay- Kot paw Nouvelle source d’énergie Sirus Lo) Le ea te ene cue eR eee aed Tel: +225 21 25 87 70 * Fax: +225 21258749 + E-mail eR Rare) Site web:pbthogh- early John ers in fuel marketing in Cte dvoire are Total Vivo Energy (ormerty She, OiLibya, Corley and number cof Ging independent petro sta J-5 "Athgugh business-to-businss (828) sales growth Sin 2011 has not kept pace with consumption at petrol stations, vestments toward the end of 2013, and early 2014 will boost B2B demand’ FranckKonan- ‘aha regiona director for Vvo Energy CBte die, 101d 086 For jean Yoou dicta genera for KlenziDs ‘sutton alocal petroleum greupThereare too many fferators on the market, putting downward pressure on revenue per station, while Fixed casts remain unchanged andhereby driving down profitably: he t0id O8G. "Economic Tberalims postive, butteo many lcenceshavebeen ranted. as small playershavebeen leaving the marke he added ‘According to data from the Petrol Professionals Asso- ciation, Total contributes the largest share of petrole- tm products tothe local market at 35% while Vivo Energy has the second-largest share at 27% SIR has the excuse right to import refined petroleum prod- ove : es fuel martetersarenot allowed to hold importlicences. This restrictions mainly concerning liquefied petrole- ‘um gas production since SIR’s output of petroleum ‘products exceeds demand. Export markets like Burk na Faso and Mali also da not have the right to import produets through the rit ol terminal all exports are handel by SIR ad transported by Gestocivia rai AEST anb bcucng Adan Magne ‘managing director for Noirienne c Hydrocarbure, have noted that while pump prices for super petrol have increased diesel has remained constant. “The govern- iment presaeves price and margin stab ‘ares ona monthly bass in accordance with wot ol. price movements; he old BG “Menivilin Butane bottling and distribution Peto- lis the market leader ith 4% ofthe woirian marke, vile ryxEnergieshas 28% The goverment provides ‘Sgnficantsubsiies onbutane productsinsmal pack- aging destined for household consumption ranging from 6 kg 028k, and around 80% ofthe butane con- sumed in the ct in this form” Roger Dago, mana ing director of Oryx Energies Cote cuir, tod OBG. SA POWER GENERATION: Flloing ts renegotiation of ‘contracts with natural gas suppliers. the government willbe able to clear its debts with independent power «producers (PPs). which stood at CFRST bn (€85.5m)as (F¥éarend 2011, according tothe IME. Cote dvore’s ‘wos, Cpe and Ato haveleunched expansion ro fects at ther gs ied therfal power plants that will helpmeéetthe governments goalofrasing production capacity by 80% to 2421 MW by 2018 from the cut- ‘rent 1321 MW.Ciprel which generates 40% oftotaelec~ teicty production. launched construction.work on 2 110-MN(Gas-frediurbine and asteam turbindin 2011 ‘that willncrease its output to 572 MW. ‘Also contributing 40% of electricity tothe grid, the auito thermal power plant started work on its €343m ‘phase three expansion project that wil increase total installed capacity to420 MW. In December 2012, the cemen | ity by agj sting) ln ing ‘The green sr tt rion cy by SOW by 2018 sen tat he domestic sed itrnonal markets 30 gcupsecureda €27Im funding patag aranged by [_Fotewng te ngotstin the international Finance Corporation (FC)-While the’ IFC andthe French group Proparco represent major backers ofthe project with loans of €97!m and €42m respectively, the West Atican Development Bank (€38n), the Netherlands Development Finance Com pany (€28), Emerging Aca institute Fund (€23m), German investment and Development Company (€15m), and B10 (€17m) also participated in the fundraising. Ina separate deal, Ato received a €38m Seniorioan fromthe ican Development Bank Notably ‘re BHO PPS are vesting in combinedcycle turbines hich wil require no additional natural gas Feedstock from the sate. This wll help the government to keep costs from natural gas purchases down ‘As for other projects; Aggreko which fist entered 6ie Toren 2010 whenitinstalled a 100-MW tem- porary gas-fired thermal power plant. won a €58m ‘ontractto generate anadtional 100MWofges-fred etecrcty Also n partnership with Petroci, American energy fm ContourGlabalis bulking a 330-MW gas combined-cycle thermal power plant at Abats for eeu, WS Sue lane? Jes" )\' a of contacts whi spol the Sovemmert sco cer {S debtwth independent power prodcers ich Sood a €88 sma of yearend 201 WMeanwh: apt ctu tostand /* fensa er ER3000n (€450n) Another 20 MW wlbe added to the national adGpenempletion of epas toa Bine a the state-owned ri thermal plant. DISTRIBUTION & TRANSMISSION. Wilt govern- decd € EE, the power utility thats 54% held by Bouygues. is 2012 net prof to CA8.390n (E1259, Up fo 16.35 (€253n)n 2011, nd manages tarsi ‘ighwottage powerlinesthat ink poner generationand {¢ dstrbution stations. The distribution network features 18.3m km of high cs, terminal adapter cables and 7848 distribution stations. | Over the laste years, CIE has grappled without ages de to a lack of investment inthe transmission and distribution networks, and increasing incidences. of frau. With the exception of repairs to turbines at ‘helgetortor ning poet ovagets bene pool ahead aroeigforand deco ia Sra Cee horelses ound 3K Stotpore troduction agen esinated C812 Son (€18,75m) yearly, dve to technical problems. That Hace ond ec eer chy sete overnet nse FAQ (C600) Inbuling 1200 met hew over nes ond reparg aie er aaa een ee ae sion network will if capacity ta 3000 MW from its cur- rec letel of 1400 ML The theres oa gh ing oho vith al eereaton ln tao Capris serene 6 Inder to prevent Ulackous aed enure Detteruieo sects, Each year CE loses approxiataly CFAASbn (€S75im) {he geese sen from legal connections to(the power gridbind eter Gos cri a Sopra ‘ise in the non-pay- lnesanstepsngvotage MentOTBils amTiyand-usrs and frau, the group is trnsormers investingin expanding its revenue collection capacity, smanferdbusnesrroupcon/coute/ Cat Soke Se REGULATORY SHAKE-UP: nl responsible for managing the netwerk.nclding ling services to endusers CE posted a 32% increase nt, tage lines, 15.2m km of battery add 500 villages tothe national rid Increasing incidence of fraud hadstrained| tribution capacity, contributing to mord blackouts) Theft of copper witng fs ao a growing problem in the country given igh prices for the metal To this ‘end, CIE sin the process of replacing copper wiring} transformer substations with aluminium However gi _enthattnemetaldoesnothold ahighvoltagecurent, aluminium wiring require frequent replacement the requlatory front the MPE has drafted a new electricity code that aims to establish an energy regulatory body with stronger _ monitoring powers, as wall asset up an agency to pro- oe enaray efficiency nd renewable. he crétion of model concession agreements fr distribution and transmission and changes othe tari system and tax breaks to entourage geatrfreigainvestment are abo ing consderedaspartofthenewlegilation Thecode is due tobe passed at some pont in 2013 “Other outstanding issues in the draft include the levying ofa 20%Gtax of Capital gains as a condition for receiving mining permits (See Mining analysis). Only ‘companies benefiting from a mining convertion will bbe exempt. While mining companies will ro longer receiveataxbreakonttheimportof equipment, machin- ‘2 and spare parts for exploration operations for up_ 10 30% oftotalimported goods, they wilinstead receive 2 5% reduction(en taxes and duties) _mentonnsthe transmission and distribution network 18 2011,the governmentsetupanen reqatorybody, Lnergies, that is responsible for financial and tech- ‘ical mattersfr the sector, by combining Société de in ‘di Patrimoine du Secteur de FElectricité and ciétéd Opération borienned Flectrcté. The Nation- al Regulatory Authority for the electricity sector is sion network consisting of between 90000and225,000 } responsible for setting electricity tariffs. Under the conditions ofthe Financial assistance provided bythe World Bank and iM the government ncreasedindus ‘tial tariffs by 10% in March 2012 and aims to transfer ‘more large household end-users rom the socal tariff {CEA36.05 [€005] for the frst 80 kWh and CFA7399 {€0.11] after that) tothe general tariff (CFAT4 54 [€034] per kwh inthe medium term, Z OUTLOOK: Cate choire exports 174 of ts total clec- the Ato power pon that ut power supplyn 2010, 9 try production and ian curse to export around 350 MW over the nxt Fi yeas Jn ght of reforms and greoterinvestmen, the electcfysegment asthe potenti to ro further particular thn te con texcof the WAPR the resiona elec market et up By ECOWAS cceanaas tthe same tine the author WesmustQaniniieoccience oF ower cuts) 4 00820 1523 | 13262 | sma asta zag ans | sTa is aS m3 = aos“, -~- Ain afeuy > lee afer ak . Expanding capacity what do you expect from new partnerships? TOUNGARA: We want more acthe and dynamic oll exploration to demonstrate the potential of our mentary basin and to significarty grow national ol production Since 2011, oureffortshave enabled our partnersto conduct 9717 sqim of 30 seismicsurveys, tight exploration wel and sx development wel for a total investment of close 1o $823. Tis has resut=, cedinthreesigniicanthyérocarbors dscoveresat the Indépendance-tXwellin the Vanco Ci-40T Bock aon {Xin Tulow’s 0-103 and Totals hoir-1Xin 00. terms of partnership, we accoptaliparires withthe corel ieee demecl GeO ilexporationandproduction Wealsodevelopsouth- in Yamoussoukro, and excluding the depot inBouakE Vive Hue COU | south partnerships with other African partners from thesub-Saharanregion BetweenDecember 2011. and October 2012, we signed 14 contracts with French, ‘American, English, African and Woiran oil companies. How have changes in butane and pump prices affected the sectors Financial equisaum? TOUNGARA: In anuary 2013 there were increases in Super asa and butane gas prices even as we i tained some butane substi. The impact on house: kasi nes aera Ady Inglaceinthe btanemarketbeforehand andnow the Jovernmentisstving > ensire that prices are apie. Thismeasurehascurbed the subsdysmonthiy defi. hic averaged CFA1Sbn (2.4m) in 2012 nd which made supplying bitane tothe country probiematicas tre Werenovng TouIe payngthesubsidy duet cs panies. Since January 2013 this is no longer the case, but the government is naw focused cn finding the means to pay off the subsidy arrears, which totalled (CFA25bn (€37.5m) atthe end of 2012. n the mean time, the Société lvsrienne de Raffinage refinery has ‘absorbed this deficit, advorsely affecting its Finances. (in April 2013 the appilcation ofthe automatic price ‘fixing mecharism for petroleum products occurred. simultaneously with the uniformisation of prices on aces coneitioned butaneacrossthe country. which lowered ‘butane costs in the interior Prices on B28 butane bot- ‘es, which are also used by households, were lowered aswel while the government put in place the mech= anisms necéssary to sustain transportation costs for petroleum products subject to transport equalisation iaeveterncsleve some : storage for petroleum products? | Tene Cota oly Soca ee Te a asta coarereetceset) rg pec ree 24000 uot hd Fae oranda metv elke wood thats estoy sate ots Thera) (Gndemangand GESTOCThas significant capacity How- —— ver capacky i insufficient under the secuty stock | plc which requires staring the equivalent of two Ironths ofthe previous year’s consumption Securty stocks are currnty 15 days for supe. ive days for Aiese and six ays for i Fr butane, current storage capaitys about 7200 tonnes “hemain challenges, therefore, aretoinereasestor | agecopacty esecial forbutane.Thestategtoc ‘ythis outst expandthe Yamoussoukro depot. acting 30800 cu mates Torq hyrocarbons and 20000, | tonnes for butane and bil four new depos. wth 250,000 cumetresand 12000 tornesinSanPdroand ' 74900 cu metres and 17000 tonnesinFerké ‘What pipelinesare fader wa)jand how wall do.cur- 7 ‘opt transport regulations ensure security? TOUNGARA:Theruit- produc Abijar-Yernoussoukro sipeine hasbeen competed andwilseon be insenv- ice-The Yanaussouko-Ferké section needfinancing> Regulations forte transport of petoleum products in bte dcr hast be put in place and adapted to | the new challenges concerning transport to ensure | security. Specificlglative dcuments forthe tans- portoFpetroleum productsare current beng prepared eee =1 (To what ExzenDare West African government involved in exploration and production? HEAVETEIt goes through phases: it's ronier expo ‘ationvsere no exporationactvty hss been coneyety iff unsual forthe goverment tbe volved butt varies from country country Thecountriestrathave along rack record of trying to nd gland have but national oi compary tend took farsa estrightat the bechring lng tortor herethere fave been no ol and g36 dscoveres. you generally ny have a department of energy that does not get involved; they rely on a taxation and royalties frame ina country with developed oil an gas indus tres you do see the set up ofa national oil company. which usual particpates ing up in-country expertise and ensuring the partci- pation of local investors. We are very supportive of having as many local an indigenous companies tak- ing pain erving the supply chairs theps to create tuarsparenc. remains a high-sk ond eapital-nten- sive industry, and most governments do iat have the financial capacity to get involved in the financial side andlackstilled labour Thats the reason why theyrely fn taxation, which s rsk ree for them. ‘Towhatextentmiahtforeign companiestorn tolist: ‘ngs on local capital markets for funding? ——HEAVEY! Thereis only small amount of money aya able onlocalstockmarkes. the primaryreason fo ike ours to enligis to allow local investors as wel as pension funds to actully participate in their industry, UULiLE not realy aZOUERof financing The amount of money involved is vast so you need an investor com munity that really understands the risks involved, in Ghana, for example, we have 16,000 shareholders for a smal amount of money. soitis more about support- ing local tock exchanges and helping to create better stock markets. One of the key issues that ail compa nies should be focusing ons to create anitwestment climate and make sure there are a5 many business Ficonses aswell ae buTe= opporturities as posite so odoes not dominate the Cle econo Supporting the lcs stock exchange TB inporiant sit back other businesses and crests a mre viable busines communi When youhave ol args genestinghuge amounts freven twihave a postiveinpact onthe toon asa vols. (Mihataretheareatestchalengesinoffshore explo) \ration in West Africa? HEAVEY: When talking about offshore you are look- ing at technical and equipment failure risks, and there hhave beer a number of devastating examples offal during the past few years If you havea problem, it ‘endstobe abig environmental probe se dreciydesina wih tangible Youmighthaveigenvonmentalimpects ike ‘fshorein the Gulf of Mexico every 10 years, but the smaller ones onshore are more calencing Hon muchroomistverefortheparticpatonctiocs!) \fims inthe production andvalue chain HEAVEY:One ofthebiggestbenefts1 companiescan bringto an economy sto encourage growth ofthe piychain and local companies to get involved to help ‘hems bring thar standards upowecanacualy ise |, them. Forsafety reasons, youne and suppliers to meet particulars 2 contactor and you resubcontrating srvicesto lca companies, andyou cantainthemand beng them to very high standardthas @ huge knocicon effect an the economy = both in terms of employment and bringing standards of al those companies up ‘Theol industry therefore helpstasupporcothersec- tors in the country. That i why we support mecha "sms ie invest in Aria since many companies were {acing the same issue: owt involve focal companies Seyi eseceprien arsed Dares we vere abetoincessesmale conan tan ard, as well as help them to finance their operations.(Taking off) : re : = Upstream oil and gas exploration(advances)as international companies >) {snap u blocks _ > Thelusrian government prioritising upstream oiland gas.explorationin offshore blocks, and adopting strict. polis to iit speculative actly. According tothe Ministry of Petroleum and Eneray (Ministére du Pet- role del Energie, MPE) atthe endof the staf of 2012 total production of cide o om the prod ols of 111,126 C127 and C40 was equals The county Ianng to Boat afore xploston ae prot ‘gwar rng be lng af ee eda 26 Tarte bulkingotan Simin theltrings emi 2013 he Marin gts J field nas an anticipated gutput of 7000 bpa In Ape 012i Paolt at Et operator equredan indret 6% terest the 127 lock hough | taser of dts oon Mendel Eris “Se bmbariels,or an average of 31.286 barrels per day "_Affen, the AIN-lsted Nigerian oil and gas company, (ope), 2 decrease of 103% from 6.22mCGver the same period in 2011, However, total gas production saw a 10.33% increase to 288 milfon British thermal units thas agreed to sell its 100% stake in the Lion Gas Plant ‘and 4796% stake in the Cl biock to Petroc. With capacity of 5m uft per day.theplantprocesses gas (uuu), up from 27.17 MMEtu While the Cl-L1, Cl ine and butane from natural ges From its CH11 block 26 and C127 felis continue to see strona production )} levels the C1-40 black which contains the Baobeb Field ‘and operated by Canadian Natura Resources (CNR), |j has seen diminishing production. Subsequently, the ‘share of natural gs production fr the Societe Nationale {dOpérations Pétroliéres dela Cotedvoire(Petroci fll by5.d% to1683 MMBtuinthefirstsicmonths of 2012 From 17.80 MMBtu over the same periodin 2011.Dur-_jfto the eastern-most point of Woirian territorial wate ingthis period total oll and natural gas production had ‘an approximate value of CFA352.62bn (€528.93m). ¢ LEADING THEWAY:Foxtrot,majority-oned byrench conglomerate Bouygues west CFASOObN (€750m) toboastnaturalgas.outputtromitsC-27 block, the country’s biggest producing natural qas field, over, 2 five-year period, The company secured a guarantee and CARS C-26 (6Okmsouth-west of Abidjan) and 40blecks (25 matfshere). ASof 2012, the Cl Bock, which contains theLon oi fei and Panthere gas field | andl 13 km offshore hasa capacity of 4933 bpd of crude ll and 239m cut per day of natural as. Aen stl holds 65% interestin the C01 exploratory block, {wich contains the Kudu, Eland andibexyielts,andsits_ ithas estimates reserves of 102bn cuft of natural gas, {and 20mbartes of ol respectively. Giventhat the bo islocatedtothenorth-westof theJubileeand Tweneboa { olland gas finds in Ghana, both of which haveattract- {42 the attention of intemational operators, it could Vo consdeablegromise wihPetrciadevelopent/ Ip partner, Aften is currently taking steps to prepare a from the Multlateral Investment Guarantee Agency fed developmentpan. wtichindudes aseismic dataset F for up to €339m forfanjequty investment, by SCOM Energiethat wilhelp fad upgradesto the exstingpro- Rito, the Perth-based independent energy com- pany, started an exploration programme forthe 675- duction platform in C-27. The company's alsaseeking_ s9-kn Hippo Feld in its C-202 biock, which sits 30 km ‘partner to buy a 12%share ofthe gas field. With proven reserves of 611bn cu ft, the Foxtrot ‘ed ocatedin the waters off acqueuileprovdes the majority ofratua asta the At, Vi and Cpr pow- erplants, thas a curent capacity of 110m-120m cu {of natural gas per day. hich i expected to rise to 240m cuft starting ini 2013, with a maximum out put of 154m cu ft following the completion of the expansion project. The capital injection wil also go south of Abin after disapointing fndingsintheade- cent Gazelle ld The company has since suspended its exploration plans after signing an acquisition deal | wtholtrade Vitot Perthe del terms Vito willacquit 2.65% stake inthe company’s Cate divoire assets for €28m, which wil be used to fund exporation active {ties. Risto and Vito plan to undergo more technical assessment af the blacks prospects before driling ic a5 also stated that it would nmid2012, ral production of ude ol from the producing blocks of Celt, €h26, C127 and {c-40 amounted to 566m barrels, ran average of 31.286 barrel per day. Avumber of erations ‘roupe are active in fydrocarbon reduction inthe county with sever! fies ceo inject pte 0 tress ringand ld. sen lator120 ENERGY & MINING ANALYSIS ote dvoite could benefit Consider entering nto aint oll and gas development programme with Rialto forthe I-01 and C-202 blocks, “which would help meet the government's goal of -# increasing natural gas supply for power generation 6. CNR has also launched a diling programme in the ™ deepmater Baobab field. t has brought ina rig to dil development Getto ef icant ‘operator holds 245% stakeinthe block, while Anadarko Petroleum holds 2 40%, interest and Petroci 15% JK Final, the Ditectorate General of Hydrocarbons has recently announced a restricted tender for exploration ‘of the C506 and CI-507 offshore blocks. LICENCE TO DRILL: Given ts push tincrease oil and ‘gas supplies for the power sector. the governmenthas players seeking to obtain ‘PES eatlon neighbouring ‘the fel, whichis 900-1300 metres deep) OPPORTUNITES: 1na’slarge olland gas find ingginthe Fiemciaatoaan a ks. Dn Perec bros were ng Bur have drawn interest from. number of interna tional oll companies. n October 2010, Taal acquired .260%stake initra-deep offshore exploration permits for 1-100 block (100 km south-east of Abidjan) from Ivorian eneray company Yams Petroleum, Per the deal Total t00k over operating rights forthe block, which 1500-3100 metres deep, while Yam stil holds 2 25tinterest and Petrol 15% inthe asst, Tota also s stakes in exploration permits for three other tra deep blocks, C1514 C1515 and Cl516,whichare located inwestern waters. n April 2013, Totalmadean inital discovery of28 metres of et. pay romits fst Noire-1X exploration wel in the wastern part of block | 100.atadepth of2280 metres, suggesting thatthe Sunil Tana basin continues it ~ Panatiantic Exploration, a Russian-American group. and Russian major Lukoil madea discoveryin deep off shore block C+401, whichis also located adjacent to the maritime border with Ghana and north of Totas 4-100 block. The companies driled a well at 1689 metres and found deposits of light oil. Cukai also ‘announcedin2013 plans ta invest €310m nan explo ration programme that includes driling three well The Russian company is now undertaking exploration activities on five offshore blocks Tullow Gils findings deepwater block CI-103 also suggests that ichoil deposits inwestern Ghana extend into Cote dvoire with discoveries oF ight olin aT onan Fan system inthe block Tullow, which also the ‘amped up esau on companisto start exploration iddevelopment activites riskosing the permits A preset, the government uses preducion sha. ing contractor aardnghlacs.The MP has evoked tight permits fro companies that have nt Stared development work the man ceria for revoking licences is lack of intent duet tecrical or franca cepaciy ta engagen exploration actives Safar the civernment has aleady signed production sharing contrat for 26 out of 51 blocks Eight ling came paign took place rom Api to December 2011 Through sgning production sharing agreement, Petrocihas a takena more active cen te energy Sector is sia to mary Aficansate-onned eneray fens Petro! partipstes inal and gos expiration acts by acquiring equity of up 015% in permis While crude oi output fell over the fis haf of 2013, exo share in production ced onthe Back of production shana contacts According athe NPE, the former contibted some 36.67% of total production ~ or 2.08m barrels ~ as comparedto2361% over the same perodin 2011 The Woiian governments earings) totaled. about 498.2700 (€1474) trom Pettocis shares. While the fem conducts few ding campaigns jist fe between 2001 and 2011 =eprovdesaccosstosopis cates geoigical and ek dat tits partners Petocisacqustionsver 2012 incuing Aeris rat ural os asets and raising its tke in it's Garelle feito 2% partrthe companys mandateto deve. ap the energy sector and support te discovery of ‘moe oland gas aes in colaboraton th prin Given profits of CFR43 96 (€65.9m) in 2011, Petroct fas the meendo contribute fo further explora Depuis 1999, nous distrib eee eee ots ‘Nous distribuons également des lubrifiants de marque vacate c ESS esas eae eee (ise CL) eee een Ceara Cierra ae eee Pres eae va) Een Cer Tu eiaeome orc)¢ (Deepsea diggers ) ‘Tre Atanicaheliso potently crate deeprater size ofa FF a S[iisearch of deeper and more diverse reserves _/ offshore tydrocarbons exploration conttutsthefinal X. 2000 metres. The sl ise sts below approximately frontier inthe oil and gas sector Offshore dling involves targeting hydrocarbons deposits trapped, ‘Beneath the acean floor - on sme cases beneath iniandlokesandeas-themostcormplexandexpen~ Five way of exlting deposits. And while the returns rave the potential to be sigrificant, upfront vest- { ment tends tobe high-Further there are environmen _plalfazars involved withthe extraction process the F010 Deepwater Horizon oi spl in the Gulf of Mesx- [ae een qtasusele Howe as 8 energy demand increases and oil prices rise, explo: GLOBAL GROWTH: The "2012 Offshore Exploration 2000metresof post saltrock upto 3000 metres below the Atlantic's surface Extraction ofthese depos very expensive, given the depths and the complexities OF ing but explorers are prepared tives \ bral’ Santos Basin plays host to one ofthe most sigan decoveries nthe western hemsphere [inthe past tee decades. The 2006 discovery bythe Une BE Group. ofthe Tp cfd — which sestimat- {edt contain upto on barrel of recoverable light (Sheped Brine the op aking ae destina \ as for mestmentinto exploration an production successful deepwater activites in offshore Braz Toveedplovesto caste ees further ail Geo- _£ Outlook” from Morgan Stanley Research estimated -Hogical similarities between the continental shelves off {ist offshore exploration would increase 18% in 2012 South America and West Africa have resulted in the ver 2011, with wells expected to be tested in some ‘Atlantic Mirror theory, with its pfopanents suggesting. Fe aaa tany of the es sites ae in emerging that precalt economies in South America, West Africa, East Aftica ‘and gas deposits may exist in similar ‘quantities off West Africa, having been trapped when seer enc Aia andoshore discoveries coukl be the continents were oncea single andmass,Atota of Siimportantgame-cangerin these regions Despite the lrge-ealeinvestments fie ardcap (/ tal andthe indust’s greater relance an techooay inven comparedto the onsoresector.offshore dling haste potential to delver healthy rot 1 per 2010 igus from the tema Ener Agen. 7 Gfshore production ~ outs 7 Seacurputstoling ili two percentage pints (te 215% of bel oto by 2015, ad the ofhore segments set 0 further incense ts contbution (Jobat ol production inthe subsequent yeas.” NEWFRONTIERS:Exlorers arc enteringternewre- asin their quest for more resources. Exploring and ) Heveloping depos the Alan's pre salt yer becoming increasingly important inthe ashore sec- _tonfolomna significant finds off the coast of Brazil and topes forsimiardscoveriesoff the West Aca coast Pre-salt deposits describe reserva of cue olor Coan edinrockandithen ve becor ‘covered with a layer of salt, which can be as thick a5, -overed with a layer of sl ao arin. AS_f rope, where North — 115 wells are estimated to have been drilled in pre-salt plysin the regionin 2012, and recentiscoveries of ‘hore Angolahaveenhanced confidence among explo ar operaing inte West African pre-salajer KEYREGIONS. Onboth ides ofthe African continent, ‘Fioneering exploration firms including Tullow Oiland thes based Anadarko ~ have announced significant Giscoveriesoshore Ghan,SierraLeone Mozambique fd Tanzania, with new finds announced in counties vith established offshore industries including Nigeria {and Gabon Frontier wels are expected through 2012 offshore Liberia, Cote d'Woire, Guinea and Mauritania, RESOURCES & CHALLENGES: Explorationat the pre alt ayer and of greater water depths have both ‘merged as possiilties in part due to improved tech tology ad expertise. Seismic surveying ~ essential imaging the structure oF Geap-sea sites ancl locating deposits, especialinthe pre-sallayerere deposits gre obscuredby thesalt—hasbecometr maresophis- taed i prt becaise of improved pcearbottom Following lriicant ‘deepwater hydrocarbons tiscoveies in raalin rece years theres ‘considerable interestin the Wer afin region, [totalof 15 walls are ‘estimated >have been ‘lle in pe-sat psn the region in 2032. Recent discoveries in Angola have raised confidence among expres,wm ENERGY & MINING ANALYSIS 1s of Apr 2012, there were a total of 680 citing rigs aalable globally Wie 80% oF hese were in ee a shortage is expected Inthe near term, pushing op the costs of ig hie. ‘survey acquisition, Deepwater dilinghasalso advanced with the recent emergence of dual gradient griling water columa on dling ~ a key development. DGD allows for greater management ofthe dounhole en ronment. reducing costs andimarvingetfciency wile permitinglorger ‘Ravances in dynamic positioning devices - used by a well with no oll ~ ‘many rigs ~ and navigation have ao conibuted to ihe industry's development | PLATFORMS: A varity of platforms and faites re “alableforafshore exploration and production select: Jed according to the/depth conditions. During the ‘cxplorator phase ond oFsaveraltype of mobile ding platfornsare sed Inshalower ates ding barges, _4submersible rigs or jaclcup rg platforms ~ which are > oF four leged frame that cah be jacked where necessary~ can be deployed Semsub 4 nese platforms havea hull that lots uk ass ofsuriion weight torernain pig they ean be usec inwater depths of up 0 3000 metres and are stable _renough forse in ough ses. For depths greater than that, variety of floating and subsea facilities are used. Te most advanced drilships can cil in deep and “eure deep waters upto 3650 metres “Diice the potential ofa field has been appraised a rote permanent production platform willbe Bult anc Tor decades and need to withstand hostile conditions, meaning that the are expensive to build Thee area range of platforms diferent water depths. COSTS: As of Apr 2012, there were a total of 680 ling gs vaatefor service soba of which 78 Weel ship, 374 werejaccupsand 185 werese ‘Ab Whe amie 80% ofthese Figs Were ue, the Tpstrys warning of lobl ig shortage in the near ier THETOSE of igh have ben Given upby the shortage: the average daly price for dilhips capa bleof ligt 1200 metres ormore exceedS450.000, wile the daily rate for some facies has jumped to $600000.0ifeldsenicecompariesareseekratocop towed to the site. Offshore platforms can be in place fire oF stoi Ne italise on market interest by commissioning new rigs with ever 100 new rigs ordered since late 2010. (00) technology - which lessens the impact of the 4g Despite rapid advances in technology and growing ‘expertise within the industry, many challenges sil Femain. Offshore dling & extremely costly: develop- ing a sub-saltwellin the waters of Brazil for example, sing strings and larger diameters. .costs up to $150m,Diiling a deepwater dry hole ~ oF is understood within the Intry to cost $100m. Upfont investment i high, but long erm commitmertisnecessar withing rigrental rates ‘boosting costs. Managing floating platforms conditions highly comple, with their stance fom shore nd humanresources costs andchallenges ang Ze themix The production process conines to defiard ingenuity and innovation, as personnel seek to an Sgehigh presses tamperstre shock othe ising i and demanding geological condition, 25 wel asthe Alscharge of dling fds and produced water. The tragedies “human, environmental and financial ~ of ffshae ering reecrthe completes and chal- lenges ofthe sector. the US, the Deepwater Horizon dlisaser ~theconsequeniceofawelineedbov-dut on the BF-operatee acondo Prospect ~ is the largest ‘accidental marin spline industry history, pump ing up to 4m barrel into the waters of the Gu of Hex. Te blowout ako killed 11 oll workes;ese- ‘where rigs ave sunk or been destroyed by expiosion, “often with many more fatalities. The Tripact of these accidents hasbeen to push govern imentsandoilcompaniesto adopt more sringertsafe- _ty standards to regulate the instr. REGULATION: Accidents have repeatedly prompted regulatory retreats, with goveraments responding to public opinion in the aftermath of adsaster. The Obama administration reduced a six-month moratorium in the aftermath ofthe Deepwater Hor zonexposionand the accident prompted globalatten- tiontoindusty standards. offshore ling regulations are under scrutiny eleihere as well inciuding within the EU where a proposed daft reguatian that cavers the entre lifecycle of ol exploration and production $ oct perae dWectrciedelane MA ae Teson ~ Bane Teton ee eee ty Eoeennya stile” rateithe ni of economic growth fons are under vayin ised ware toncreasehydroelectrcand ther fe ratieriyadisaier raiincemres populate de poh cata foc ened sfrendorresdenilarcivkatil cecsirerore eee meal ae eae ot reroeey PROJECTS: With construction onthe hydroelectric dam eSoubiéharngbeguninFebuary2013,Cte die Baking a afr sep gw expanding ts out Financed with a Zocessonal lan of CFA234En (€3585) fom Chine based Exar and CFAS2bn {G438n fom the wean government the ttl cost uur pcjotaeivtod CFASZION (€4965n),Thedam ubich’sto be but Chnasino Hydro arid supervised by Belgium-based Tractebel Engi- regal hae a alec era IW and generte 1700 GWh pe year hereby sini (emt rseing arnt! cach Soc at 5800 Gh sof 2008. power a incing # tage cable (225K), set to be bulk Za abides YopoupOeerce er saggy ratitional focus on hydroelec- tricity. After completing works on dams in Kossou in 1972, Taabo in 1979 and Buyo in 1981, the emphasis, on electricity production sifted to thermal energy the 1990s, dve to offshore natural gas discoveries. Current, more than 60% ofthe country’ electric- ityis produced by thermal power stations, while 35% is generated from hydroelectric sources. Although hydroelectric provides energythatisboth renewable and unaffected by gas prices thermal eneray remains ‘por, and the government has reduced the nego tiated price of gas suppledby producers, suchaslocal Bouygues subsidian Foxtrot, tothermapiants, though these rms have been partly compensated by evs= ing production-sharing agreements, Several thermal projects are under way, starting with expansion atthe Aaite PowerPlant, whichis qumed by Globeieg (76.9%) and by Industrial Promotion Services West fica (PS WA, 23.1%), and the fist two phases were completed Jn 1999 and 2000, respectively. Azito-3 will add anoth= er 150 MW to the combined 300 MW of the first two ~ plants. powding an acitional 1000 Gh per yar to the company's curent output of 2200 GWh, account ing fr over one-third of Cote Soir’ eecrcy FINANCING inaction to quaantes from the Wor Bank’s Multilateral Investment Guarantee Agency. around CFAL740n (€261m) of financing has been Secured from a number of firms inelidng lobeleg IPS WA, the Intemational Finance Corporation, the West icanDavelopment Bankr thedican Devel opment Bank, among sihers.Hyundal which signed a fned-price turnkey contract with Azo in December 2041, wilboginthe 27 months of constiction onthe (FARR Tn (€340.5m) project now that financing Mas been secured. Mesnahil, US-based ContouClobal andthe natonaipetcle {Operation Pétroires dela Cote vor planto begin vorkona330-MIW piantin Abatan 2013. after hay- ing signed a bilc-operate-transfer concession agree- mentinjne 2032for the CFA200bn(€450n) projec. Fartofthe goverament'snatve to boos electric ayinasirucirealsoreeson better distribution wich vl benef fom CFRBbn (€12m) of the Presidential Emergency Programme hich aimsto aceeratecrit- icalinastactte projects that illbe uses moro andsubsidise access tothe electricy network Pre ‘on hese projacts i crucial if Cte voireis to contin Ue tosatisty domestic demand wile pur export commitments wth recent ncrease n supply Zo Burkina Faso anc new del with Beni ad Liberia. The IMF has been pressuring the authors 0 ise local prices to finance the network's modernisation andproducton increases highlighting the importance of exports. as Ct choirs clients ae charged prices higher than those paid domestica Seling at higher presto Nofranhovsehols, however maybecificul further Inthe effort to increase power output forthe domestic ria numberof hydroelectric deme ae blag constructed with the financial support of foreign backers More than 60% afte country’ electric is produced by thermal ower stations, while 35% fe generated fom hydroelectric sources.| éclairer Dans le courant de votre vie Siége Social :1, avenue Christiani 01 BP 6923 Abidjan 01 (Céte d'ivoire) Tél : (225) 21 23 33 00 - Fax : (225) 21 23 35 09 Site internet : www.cie.ciRegional leader _ Expansion of dome: Inaregionhore t0 250m people and whichis expect: Gato rach 360m by 2020 s per World Bark igues. the provision and expansion ofthe power supply a ey challenge. Se up in 2006, with the initia a of Creating regjanal electricity market, the West African Power Pcl (WAP) snow pushing ahead wth a sub programme that seeks to integrate the power sectors Of ote wore Liberia ietraLeone and Guinea (LS) by nreaing electricity production and bling more transmission networks. Te projets aimed at devel- ping several power generation projects the Bum {un hydropower plant in Sera Leone, hyéroponer plantsin Guinea inaddtonto greater output fom ges- fredpoweassetsinCbtedvare-toinceasethesip Fy oF ow cost electric for export. The project also foresees thetconstruction of @ 110-km high-voltage Tn, 10 Figh-vltage stations ~ of which four wien Ciberia, five in Sierra Leone and one in Guinea ~ and the expansion of two highvotage stations in Cite aWoire and Guinea, respective. in May 2012, the Wrld Bank, African Banc Euopeaninvestment Bark (8) and the Germen group KAW provided €112minzero-inter- tetfinancing and €24rnqrane forthe CLSGtransmis- Sion coorinatnprojectto uid 1349 of poner ines. The poect ast ower electri costs inthe rei er ra superior infrastructure and power-genertin capac: i Wrcbte divi os the lowest electricity production costs per Kw inthe region, ging it a comparative “advantagein exporting electri toitsneighbours, Lue fy general manager at ito Energie told OG, Funds wil go aso toward francing fealty tu “esforloraehnéropowerprojecsinhefenin designed io generate electric bound forthe CLSG transmis- sion network. AL present, the project separated into two znes Zone Acovering the easter areas oFECOW- AS and Zone 8 encompasio the westem part. so within the WAP framework, COte wore and Walisigned a €104m electricity expartandinfesruc- .ctricity production set to benefit the WAPP:> ture contract December 2012 that wil see the con- struction ofa 225-KW high-voltage powerline linking the arees of Ferkessedougou and Laboa.Accordingto the dealterms, Cte dvoirewllprovide 30 MW Sta) Fours of demand and 100 MW! in 6FEpeBh periods. Withthe provision oflav-cost power from Catedvoire, Malillbe able toreduce electric prices fom CABG (€043) to CFAAS (€007) per KW. The Worian government ao expects to doublethe capactyofthe 330-KW transmisionine between Cote {Fiore and Ghana in 2013, Projects in the pipetine include the 330-KW iver (Céte Noire) andPrestea (Ghana) transmission lines that are subject toa pre- feast study and tobe funded by the I. The pr ectwilalso see theistalation of two transformers of 330 and 225 KW atthe Riviera substation LOW COST EFFICIENCY: Regional demand for low 20st electricity from Céte d'ivoire will increase in line with the development and exparsion of transmission tks tothe WAPP network. With exporsalready reach Jag 17 of total production, the government ims become a key electricity centre within the region. Inorer to boost everues fom power export, the Iiian goveirime plans to invest nal segments of thepowersuppiychinwith the goal afincreasing kw ‘ost power capacity to 2421 MW by2018,Onthegen- eration side, the authorities ae vesting in upstream tiporation to providesesuffceneynnatregassup- ples, the countrys major eneraysource, Cte éroire Seok To verify its energy sources with hydropower and renewable energy contributing an aditonal 15% land 5% to total capacity by 2020 The governmenthas alco targeted the underfunded transmission and dis- trlbution networks for investment, ven that every year the countryloses 3%ofitstatal production before itreaches end-users deo poorly maintainedandout=_ dated distribution and transmission networks. ib ‘iinmind,the authorities arenjectng some CFA4OOEN {(€sdOR to construct approximately 1200 km ofnew power ines as well 5 repairing voltage transformers. Regional demand for loarcost electicty from Cote dvcire wil inerease in lina withthe development and expansion of ‘ransmssion las othe WAP? network Most funding for projets toenhance the WAPP wil ‘come fom international, development agencies and banking groups while the arian government ital viinwestin upgrading Ms dtsbuton and transnission network,Regional leader _ Expansion of dome: Inaregionhore t0 250m people and whichis expect: Gato rach 360m by 2020 s per World Bark igues. the provision and expansion ofthe power supply a ey challenge. Se up in 2006, with the initia a of Creating regjanal electricity market, the West African Power Pcl (WAP) snow pushing ahead wth a sub programme that seeks to integrate the power sectors Of ote wore Liberia ietraLeone and Guinea (LS) by nreaing electricity production and bling more transmission networks. Te projets aimed at devel- ping several power generation projects the Bum {un hydropower plant in Sera Leone, hyéroponer plantsin Guinea inaddtonto greater output fom ges- fredpoweassetsinCbtedvare-toinceasethesip Fy oF ow cost electric for export. The project also foresees thetconstruction of @ 110-km high-voltage Tn, 10 Figh-vltage stations ~ of which four wien Ciberia, five in Sierra Leone and one in Guinea ~ and the expansion of two highvotage stations in Cite aWoire and Guinea, respective. in May 2012, the Wrld Bank, African Banc Euopeaninvestment Bark (8) and the Germen group KAW provided €112minzero-inter- tetfinancing and €24rnqrane forthe CLSGtransmis- Sion coorinatnprojectto uid 1349 of poner ines. The poect ast ower electri costs inthe rei er ra superior infrastructure and power-genertin capac: i Wrcbte divi os the lowest electricity production costs per Kw inthe region, ging it a comparative “advantagein exporting electri toitsneighbours, Lue fy general manager at ito Energie told OG, Funds wil go aso toward francing fealty tu “esforloraehnéropowerprojecsinhefenin designed io generate electric bound forthe CLSG transmis- sion network. AL present, the project separated into two znes Zone Acovering the easter areas oFECOW- AS and Zone 8 encompasio the westem part. so within the WAP framework, COte wore and Walisigned a €104m electricity expartandinfesruc- .ctricity production set to benefit the WAPP:> ture contract December 2012 that wil see the con- struction ofa 225-KW high-voltage powerline linking the arees of Ferkessedougou and Laboa.Accordingto the dealterms, Cte dvoirewllprovide 30 MW Sta) Fours of demand and 100 MW! in 6FEpeBh periods. Withthe provision oflav-cost power from Catedvoire, Malillbe able toreduce electric prices fom CABG (€043) to CFAAS (€007) per KW. The Worian government ao expects to doublethe capactyofthe 330-KW transmisionine between Cote {Fiore and Ghana in 2013, Projects in the pipetine include the 330-KW iver (Céte Noire) andPrestea (Ghana) transmission lines that are subject toa pre- feast study and tobe funded by the I. The pr ectwilalso see theistalation of two transformers of 330 and 225 KW atthe Riviera substation LOW COST EFFICIENCY: Regional demand for low 20st electricity from Céte d'ivoire will increase in line with the development and exparsion of transmission tks tothe WAPP network. With exporsalready reach Jag 17 of total production, the government ims become a key electricity centre within the region. Inorer to boost everues fom power export, the Iiian goveirime plans to invest nal segments of thepowersuppiychinwith the goal afincreasing kw ‘ost power capacity to 2421 MW by2018,Onthegen- eration side, the authorities ae vesting in upstream tiporation to providesesuffceneynnatregassup- ples, the countrys major eneraysource, Cte éroire Seok To verify its energy sources with hydropower and renewable energy contributing an aditonal 15% land 5% to total capacity by 2020 The governmenthas alco targeted the underfunded transmission and dis- trlbution networks for investment, ven that every year the countryloses 3%ofitstatal production before itreaches end-users deo poorly maintainedandout=_ dated distribution and transmission networks. ib ‘iinmind,the authorities arenjectng some CFA4OOEN {(€sdOR to construct approximately 1200 km ofnew power ines as well 5 repairing voltage transformers. Regional demand for loarcost electicty from Cote dvcire wil inerease in lina withthe development and expansion of ‘ransmssion las othe WAP? network Most funding for projets toenhance the WAPP wil ‘come fom international, development agencies and banking groups while the arian government ital viinwestin upgrading Ms dtsbuton and transnission network,(( Fiaw ave electricity tariff hikes for industry and C eduetionin gas prices affectes the sector? KAKOU: The tarift adjustments andthe renegotiation ofthe buying price for ga are part of araft of meas- tures taken by the government to absorb the electrc- ity segment’ structural financial deficit. The tart increase wasniecessary despite a reduction nthe cost of producing electri, which mas induced by lover- ing the gas price This accounted forthe increasing weight inthe energy mix of thermal generation rela- tive to hydraulic generation and investments needed inthe sector Restoring the desied financial equilbri- tum creates a favourable environment for vestments ingenertion anc inthe transmission andistribution networks. Gnenthe outtookofstrongeconomicqrovth, these investments are an assurance forthe hairan economy andits industry that twill have access oan electricity supply tat is both continuous and oF hich ‘quality, 95 well tat a price eat willemain one ofthe most compete inthe region. “To what extent are investments in generation in} \ line with short- and medium-term demand?_—_) In ower to absorb te significant generation deficit accumulated overthe past decade. the govern- ‘ments launched programme to seinforce genera- tion capaciy that Should bring installed power from 1520 Wat presenttosligrtly over 30D0 Nib 2020. This programmeis designed tosatethe annualqrowth of internal demand of around 6% ince 2004, 25 wel asthe needs of neighbouring countiesthat have besed their electricity supply polices on low-cost eneray imports from Cote diva’ system, This capacity increase wl be achieved by optimising thermal gas generation via the development of com- bined cys: by promoting renewable energy. rima- rl from biomass power stations; and by rebalancing the energy mic with the development of unexploted hydroelectric potential which is estimated to be 1900 Mi, rioritsing the expansion of hydraulic potential we enfrdbsneegucon/couniy/Cate die ah Compagnie lvoirie neral, does not reduce the importance of thermal genera- tion but is designed to rebalance the generation mix, which comprises 27% hysreuic and 13% thermal ‘Thesmal generation brings flexibility in. managing the balance of demand and supply. and also makes for secure generation in times oF drought ifthe propor- tion ofhydraulcis igh Thermal generation must con- tinue to increaseinthe short term, asitis curently the ‘onlynay tobricgethedeficitin areasonabletimeframe. However. investments in developing new gas fields have certainly been delayed, More positively, ike in Fyeralie generation. Céte dhoire has significant gas ‘eserves. namely the Manta and Mahifieds, and block (101, al of which offer huge pote ¢ fowhat ‘extent are Bera eipastasappre™ I (priate? How are these tariffsstructured? = KAKOU: Iris clear that developing electricity exports from Céte dIvoire should be realised in conditions reflecting the economicreatyof generation andtrans- mission cost inorder to be asupportivefactor fr the clectricty sector However thishas netalways bean the case,forinstanceatthe endothe 1990sandthrough- ‘ut the Ft acai of the 20005 "With electieity exports aeadyuinder ayo Ghana, Benin Tog, Burkina Faso and Nal, ansboter ene See eee See place. is expected that Cote dwoire wil play alead- ingrelein this. These exchanges, which used to be ess structured fiom an economic and fegal perspective, aresubject to import and expor: contracts elaborated according to the usual norms end include guarantee clauses fr power supp @s well as payment guaran #203) They also feature escrow accounts and o tariff structure based on cost for energy generation uel ‘uansmission power quaantee arama forthe elec: trey sectoc Las, xportpicesareperoscallyrevised using formulas that are indexed to parameters perti- nent to the costs of Cote dvoie’s electrical system.Sefonmns in the . pipeline) \ The government wants to create a competitive e mining code but) concerns remain over pending changes _ ‘Tosi adanthar fpiincnen Seelone cons coe aT Ebb sted ot 74in 2011 However hela mining tdaapbe weiner already employs around 30000 people While ote Gh conins 35kofthemnel ch nen ren ee Fie Rconerbutes on et theta 17Omov ofan pine inal Brimion counties (Chana, Ma, uring’ fas, Gues and Sere) ecorng te 2005 tan tina commode fom the US Geological Survey "Gee dtaree mince potentalcnt nied Topo (cet mney anes irc eee eae oe treater 100000 cares of damon in adlonto tne bo RR lied eres THEE Siar seiacng greater anise te fiathalfof 2015 aoe the qvermert anariod 28 piace eee serena ge Titi bases rmaalorionstin ete GOLD Tage got ming inthe counryhasatac- Hire eae eotimtiesors coe Poe aee ae np Ccmceeiegionas a 20! oreetya anal he wake ef new companies entering the market Rel- shatecone eee Fares Wining ot dear Min- ing are both advancing wth gle mining projects. The formes has kicked off development work nits €124m Sssingue depost.nspiteof icing gold pricesin 2013. While the ttachasfinshed57% ofits constuction work ‘on the €124m Agbaou mine. Newerestand Randgold are curently mining old atthe Bontve and Tongon depos Aer auncring nexparsion project at Borikro in 2012, Newcrst plan to triplets current output of ‘tonnes by 2017, Randgol hes announced plans to inject CFABDOn (E45) nots Tongon mine to enhanc trodction nigh of fal in output rom TB ones in 2011 to 68 tonnes in 2012, Amara Mining former- ly QuFFGole) and LaMancha Resources, which wastake_ ‘en-guer by Naguib Sawirié Weather Investments for ‘€382m in 2012, are also active inthe segment. OTHER MINERALS: As for other minerals, Sodemi, ‘through a joint venture with China National Geologi- cal and Mining Corporation, is mining manganese at ‘the Mokta mine in Lauzoua, and aims to boost current ‘national output from 275,000 to 500.000 tonnes per annum, also active in manganese, Dharni Sampda, an Indian mining company, holds bausite assets and was anarded an exploration permit in April 2013 to ming, el and copper exploration hold promise aswell) tn 2008, Sama Resources set up a joint venture with Sodenifor exploring rckl athe Samaplau project. After twodilingprogrammes. the company dscovered reservesoFTamtonnes hich contanedrick.cop- per. cobalt, paladum, platinum and gold aces. The trie’ poly-metalc reserves could make the compa- ay the fst such producer in West Aca, STEEL:TtaStel established ajont vente with tate- ‘ned mining company Sodemi in 2007 to,expore ard mine iron oe eserves at Mount Gao in the west of the country. The €777m project has an estimated ‘bn tonnes ofirn ore reserves and ill equire major investment ins fastucture to transport the ore deposits tothe porn San Pro. Teal project would havea total transport capac: ity of 18m tonnes of minerals and 15900 passengers accorting toa 2003 pe-feasbty study by Canara While Tata Steel is stil finishing a pre-feasibilty study. forthe ion ore mie, the company is begining to ‘xpiore te viability ofthe al project. TMC Thomas, menacing director at Tata Stee local subsiianyn Ct d Wore old OBG. “The company is progressing wth pre-easbity study andhesnotyet decided onthe approach to develop logistics forthe project Wehaverot gone tothe market findpaten- {ialpartners. Forth logistics, the goverment shares thesarne view with us thatitmay not beyabl for ane ojectaloneta bear the total cost ofthe ogi. There Handih ede trom sigiicant gold reserves, Cote voir hs abn tones fron ore {43m tonnes of manganese and around 100000 carats of tfamonds, in adation to ike bauxite and copper epost Inthe fret half of 2013, the {government awarded 28 exploration permits ‘ternational companies ‘mine and explore a variety of mineral resourcesSefonmns in the . pipeline) \ The government wants to create a competitive e mining code but) concerns remain over pending changes _ ‘Tosi adanthar fpiincnen Seelone cons coe aT Ebb sted ot 74in 2011 However hela mining tdaapbe weiner already employs around 30000 people While ote Gh conins 35kofthemnel ch nen ren ee Fie Rconerbutes on et theta 17Omov ofan pine inal Brimion counties (Chana, Ma, uring’ fas, Gues and Sere) ecorng te 2005 tan tina commode fom the US Geological Survey "Gee dtaree mince potentalcnt nied Topo (cet mney anes irc eee eae oe treater 100000 cares of damon in adlonto tne bo RR lied eres THEE Siar seiacng greater anise te fiathalfof 2015 aoe the qvermert anariod 28 piace eee serena ge Titi bases rmaalorionstin ete GOLD Tage got ming inthe counryhasatac- Hire eae eotimtiesors coe Poe aee ae np Ccmceeiegionas a 20! oreetya anal he wake ef new companies entering the market Rel- shatecone eee Fares Wining ot dear Min- ing are both advancing wth gle mining projects. The formes has kicked off development work nits €124m Sssingue depost.nspiteof icing gold pricesin 2013. While the ttachasfinshed57% ofits constuction work ‘on the €124m Agbaou mine. Newerestand Randgold are curently mining old atthe Bontve and Tongon depos Aer auncring nexparsion project at Borikro in 2012, Newcrst plan to triplets current output of ‘tonnes by 2017, Randgol hes announced plans to inject CFABDOn (E45) nots Tongon mine to enhanc trodction nigh of fal in output rom TB ones in 2011 to 68 tonnes in 2012, Amara Mining former- ly QuFFGole) and LaMancha Resources, which wastake_ ‘en-guer by Naguib Sawirié Weather Investments for ‘€382m in 2012, are also active inthe segment. OTHER MINERALS: As for other minerals, Sodemi, ‘through a joint venture with China National Geologi- cal and Mining Corporation, is mining manganese at ‘the Mokta mine in Lauzoua, and aims to boost current ‘national output from 275,000 to 500.000 tonnes per annum, also active in manganese, Dharni Sampda, an Indian mining company, holds bausite assets and was anarded an exploration permit in April 2013 to ming, el and copper exploration hold promise aswell) tn 2008, Sama Resources set up a joint venture with Sodenifor exploring rckl athe Samaplau project. After twodilingprogrammes. the company dscovered reservesoFTamtonnes hich contanedrick.cop- per. cobalt, paladum, platinum and gold aces. The trie’ poly-metalc reserves could make the compa- ay the fst such producer in West Aca, STEEL:TtaStel established ajont vente with tate- ‘ned mining company Sodemi in 2007 to,expore ard mine iron oe eserves at Mount Gao in the west of the country. The €777m project has an estimated ‘bn tonnes ofirn ore reserves and ill equire major investment ins fastucture to transport the ore deposits tothe porn San Pro. Teal project would havea total transport capac: ity of 18m tonnes of minerals and 15900 passengers accorting toa 2003 pe-feasbty study by Canara While Tata Steel is stil finishing a pre-feasibilty study. forthe ion ore mie, the company is begining to ‘xpiore te viability ofthe al project. TMC Thomas, menacing director at Tata Stee local subsiianyn Ct d Wore old OBG. “The company is progressing wth pre-easbity study andhesnotyet decided onthe approach to develop logistics forthe project Wehaverot gone tothe market findpaten- {ialpartners. Forth logistics, the goverment shares thesarne view with us thatitmay not beyabl for ane ojectaloneta bear the total cost ofthe ogi. There Handih ede trom sigiicant gold reserves, Cote voir hs abn tones fron ore {43m tonnes of manganese and around 100000 carats of tfamonds, in adation to ike bauxite and copper epost Inthe fret half of 2013, the {government awarded 28 exploration permits ‘ternational companies ‘mine and explore a variety of mineral resourcesUnder the Nationa 's a lot of potential for other mining projects to be One of the government's priorities for the sectors. DevelspmensPan.the users ofa possible multiuserraiaylineand.ort:the_ to strengthen its geosciences database and collation SEED ES ESI concemsif there wil be enough projects with similar” and analysis of statistics. As compared to many coun ‘nratnercthopdersloy , _inelmesand cargo vlumesto make theraliayviabie” | les nthe reglonwithmore robust mining sectors Cote Shesecor natn, => PERMITS: Pan Atican Minerals (PAM).aNigefanhead- | dei'setricmappingof potenti mineral sources OPEL LT £€8.25m of funds willbe Development Plan. UNE OFFRE INTEG quartered group, also holds exploration permits for ‘mo iron ore deposits at Mont Klahoyo and Mont Tia that contain an estimated 2bn tonnes of iron ore reserves. The project, which i still under feasibility stud, wl also see the development of 2 300-km rail road inking the deposits to San Pédro Port, where PAM jon. contract to develop a minerals terminal with 2 apart of 50m Th ‘and port infrastructure wil also serve ‘ther mining companies with operations in Btedvoire and Guinea. Forth railroad, PAM has already granted_ buil-operate-transfer deals to Chinese companies for the construction and operational side. China Railway Materials Company. for example, willprovide financing for around 90% ofthe ing stock. 2 DIAMONDS: Despite it reserves, there are -cale commercial activites nthe segrnentas dire ist yet compliant withKimberley Process (WP) requirements Tine witha UN Jesolution, Cote ‘voire's diamonds are under an embargo and are not Permittes tobe imported by any KP-compiant coun- mining characterised by Tegal operations lacking ‘government-approved permits. While the govern willundergoa KP review n the third-quarter 2013, this, ban 5 unlikely to bo overturnegin 2013, aid = GROOM TO DEVELOP:As part ofthe govecnment’ ’sdiver- sification strategy the mining industry is central to speeding up economic growth. Out of the National Development Plan budget, the government has ea matked 5.5%, or CFA6O8.66bn (€912,99m), in publ investment for developing the sector. In addition, the Mines and Geology Sector Development Plan has a_ further CFAS.Sbn (€8.25m) in funds, that Se ley fo bbe sedto develop geological databases and maps, and build institutional capacity (ie train more geologist), ela aa0)y| Oryx Gaz Cote volte SA is significantly nderdeveloped, ‘Speaking about data for ion ore deposits, Thomas told 086, “There has been no systematic exploration work done in the country and hence net much geo logical dota is avaiable which fs quite surprising for @ coumiry ke Céte dire. Guinéa has Very good geo- logical maps and alot of data avalable based on past geological work by the French group Bureau de Recherches Géologiques et Miniges and others. In Coted Nair thereslmicedavalblity part the los of data during the css that began in 2002" inorder to attract new investment, the government has prioritised reforming the 1995 mining code. How ‘vee proveon ofthe reforms have provoked oppo- sition from private investors A proposed increase intaxes on windfall profits For old mining comparieshas not been well received by theindust.Asthe miningcode'sstil undergoing rev- ions, the MinistryoFPEUOIGUFY and Eneray(MinstEre “Gu Ptrole et de Energie, MP) has yet to announce winenadaft willbe presented ts pariament fr appro ‘Such delaysto the mining code highlight uncertainties inthe regulatory framework hich could determucl needed foreign vestment LEGISLATIVE REFORM: Noncthetes,the government has kicked off aseries of tionthatithopeswilleadto further foreign investment and facilitate exploration efforts Aspart of thisprocss.amendmentstothe 1985 min- ing code, which are expected tobe finshed by ear ed 2013}face anuriber ole issues. including atx ‘to encourage companies to engage in exploration and weed out speculators. Resohing the late issue wil ch PARTENAIRE FIABLE Immeuble PECI, 28 Etage, Vedi ORYX ENERGIES Fue des Petroliers 20 BP 64 Abidjan 29 | Céte d'Ivoire Tels +225 21 27 1445 | Fax: +225 21°27 22.49 E-mail oryxgazci @oryxenergies.com ‘Website: wan oryxoneraies.com Part of AOGsince the government’ inal announcement of modifications to the 1995 mining code, the legisle~ tior’s application hes been postponed due to alackot consensusbetween the govemmentandindstystke holders eta numberof provisions. Inthe fist draft proposal the goverment sought putin place pro- Elution sharing agreements simiartolegiationinthe Sand ges sector Athough tis proposal as discard fedin id-2012, the minister of petroleum and energy. ‘Adama Toungara,announcedin January 2013 thatthe implementation of production-sharng contracts was still very much alive and under serious review. _ ‘CHALLENGES: As partof te amendment. the ken pafitathas cased se unease among cerainmin- ing companies. Oaly applicable ofrmsinoledingold mining, the tax proposal was Tst amounced in Sep- tember 2012, and follows other internat from the likes of Ghana to South Affica. Under the” amiendinent. faxes on profit would range from 9% to 19%, Since the mining code has not been modified sinceitwas passedin1995,the overnmenthasargued thatthe statesthareofprofitsneads oincesseintan dem with ising international gold prices -akogram of gold that sold for CFA (€6000) in 1995 is now seling for CFA20.33m (€31,000) as of ul 1, 2013. in 2012. the govenmentcollected CAAA 3bn (€66.45m) im revenues fom gold mining companies, doubling its earlier precitions of CFAZLbn (€31.5m) + peraors say thatthe proposal to levy taxes on prof- its exceeding an average production cost oF 5615 per ozdoes not accurately reflect their costs, which range. ([ between $1000 an $1200 per oz. Nouho Koné, head af the Professional Group of Miners in Cte dire {GroupementProfessionaldes irirsdeCotedtvoire, GMC), told O8G, “In discussions with the ministry's ing the windfall tax toa ting rol inal proposal inthe ‘Second quarter of 2013 and are stl waiting for a response” Changes tothe profit tax are expected 2 be implemerted bythe end of 2013, possibly as early {a September At the ime of writing the GPMCI had Yet to receive a response from te government. "The implementation of several measures to boost exploration activities has been outside ofthe legal framework which ould mpactinvestorconfidencein the mining sector. in November 2012, the ministry Zeauced the sizeof exploration permits from 400 km ‘0100, meannglessland would be availabe spec: ators ar companies would be prevented from si Fag on permits for large tracks of land for speculative pposes According findustry sources the measure Constitutes aproceduralchangeto applying or explo- tation permits and wil no mit exploration activities, Whi itiswidelybelievedinthe miningindustry that the minstwlesortto retical considerations inalo- cating permits = byanardingsmallersized permits for Contiguous areas ~ the manner in which the decision ‘ras takenrefeced coornationssves within the PE, and could cause concer among industry stakehok. ers.As the permit size reduction wasisuedthoughia tinisteil order via the General Direction of Mines and Geology (La Direction Générale des Mines et dela CGéologie, BGMG), and not through a decree it lacks certain legal legacy. Tis potential undene the exiting regulatory framework which could amg en invest conF egg ——— TECHNICAL ISSUESAIn another move the DGMG cangediinancal an tecinearequiementsforcom parieseceving exploration permis Companies woul need to have a minimum exploration budget of CrAoGm (€900000) and could not seek more than three permits. This inti in coafit with the esting igiloton which alowsfercompaniesoholdan inde, “ne umber of permits, While thecrfenedaftfthe “Feised code ha sigraledarestricioninthe number Of permits granted to each company, ro addtional information’38 Fe Subject has ben made public. Kane fold O56, The mining admnintasonisgvinginstruc tionsto follow new procedures that donot xistinthe ing code for permit applications, stich as the reduction in permit size, limiting the num- ber of permits per company, increasing the minimum required capital oFcomparies to CFAZOm (€30000) and setting 2 minimum investment budget of CFAGDOM (€ 200.000) Many firms askthemselves, ‘Whatis going ‘to happen tomorrow? Iris concern for companies” “The current draft of the new code has also advocat- ed the adoption of mining conventions, which would ‘igate a eve playing field forall companies seeking to_ ter the country. Unlike several other Francophone ‘ricannations, Cte'Woire’s curent legislation does rot provide for conventions, Whiledetalshave notyet ‘been determined including whether conventions would allow for tax stabilisation agreements, there are cur indgoldand Newcrest, withcon- ventions from the previous government. ~gecording to Koné, the GPMICLis working with min- Jing companies to propose a standardised convention frameworkto the ministry While not superseding the mining code, conventions may ultimately provide quar antes for companies ontaxeroneratons andl, EE In November 2012, the government reduced the "ze of exploration permits {rem 400 4m te 100k, meaning es and would be tallabe to speculators {and companies would not be able to sit on pecmits forlarge tacts of lanAn eupie environment ) OBG / Flow has the decrease in the price of gold affect), cedthe ivestmenfoutloolin Cote dlvore? BRISTOWEIE certainly hashadonegativeimpack which tas been compounded by te indecision around the new Wining Code. However the respanse bythe gov- eminent certainlhas been very postveiaworkng with {industry and binging in the Word Bank and non-gow- | rganizations Adama Toungara the minis- ier of petroleum and energy, had alot to manage, so the allocation of the mining porto to rime Minis- ter Daniel Kablan Duncan and Jean-Claude Brou, the minister fndusty hasbeen apositve signa Tongon hasbeen an engine oinvestmentinthenosthern part of the country, ith ts power aria funded by Randgold ina publ private partnership. More in he price of gold has tightened the in ‘els rid of weaker players and opens up opportu ‘esituation sinslor to that ofthe 1980s, when: of companies cut costs like exploration, which is an investment inthe future But wehaveactaly increased ‘exploration txnging in teams from Mali and Burkina Faso to Cote date. tis an enironment where there isnotmuch eadiy avaiable information. meaning tbat investment is necessary to prove oF Find resources. How doesthetimeframeto earn a return on invest ment weigh upagainst realities elsewhere? _/ BRISTOW: The timeframe of gainingareturnoninvest: ‘s inked to the quality of the ore bodies found. Howaver,CBte dvoire does offer good infrastructure, port facilities, a sophisticatod services industry and low-cost poner Immediately the hurdle rate is lower, andl fos instance, Tongon would not be viable in Mal a power must be generated with diesel, which costs 50.27 per KWh as oppased to $0.12 per KWh for Céte divire, As such, the cost profile is completely cifer- ent in Cote dlvoie, and this is very attractive forthe mining industry and prospective investors. The most successful gold mining country in West ‘Asia is Mal which comes with the highest risk and cerns oupcam courty/Cote ee the mostcostly infrastructure. As such, changesin te gud price ae not an impediment to our strategy, and ye nvested in Tongon witislower prices than the cur “tent ones. The problem is Céte d'voire has become expensive because ofthe criss. As the country’s Economy recovers, however, itbecomes easier tooper- ate andits an enabling environment. How specifically have mining companies been \ involved in shaping the new Mining Code? BRISTOWE Mining comparies wersivohedveryiile ily but he indstr set colectivey reacted and engaged withthe goverment. The government was very recepthe to that engagement, and that debate Fasbecome qute animated Thewlingnessofthesen- iarexecubves within governmentiolstenandengade ‘vey real and we are expecting the nex dao the codeto be lessedto the industry. We ha ready seen afew drafts. The World Bank is ivolved and some extemal adisrs ‘retained, and the intentions tohave a collective work- Shop debae the pros and cons ofthe latest. ‘What can be done to promote the competitiveness Céted'hoite’s mining sector? "BRISTOW: The legislation ofthe Mining Code is sophis~ tlcated and we have engaged with this government in putting in proper stablty clauses. The corporate taxis 25%, which is attractive, and we have a five-year tax holiday in Tongan, afong with a royalty of 3% that is applied during the holiday. really isa complete code. bbutitis rather the ervironment in which the country hhas found itself over the past 10 years that has kept investors away. We should be marketing this country ‘36 a destination witha receptive government. goodinfra- structure and relatively highly trained people. In Ton- ‘gon, we have used more local service providers than ‘we have in any other country where we have built mines, Cote dhoire has aso been very liberal in deal- ing with investment, with no foreign exchenge controk