This week the signing of 03 Production Sharing Contracts (PSCs) took place in Abidjan between the Ivorian government, represented by Mamadou Sangafowa-Coulibaly, Minister of Mines, Petroleum and Energy, and Matthew Lofgran, Managing Director of the American Elephant Oil Group.

It emerges from Sangafowa-Coulibaly's speech that Côte d'Ivoire, under the leadership of His Excellency Mr. Alassane Ouattara, President of the Republic, is making a positive and promising shift for its extractive industry. Thus, after the discoveries of world-class deposits, Baleine in 2021, Calao at the beginning of this year, and the launch on July 1, 2024 , of the International Extractive and Energy Resources Exhibition (SIREXE 2024), the time has come to sign new Production Sharing Contracts. Contracts covering 03 Onshore oil blocks, namely, CI-520, CI-521 and CI-522 which have a special character for the Ivorian Government.

Until now, the discoveries made in the Ivorian sedimentary basin are mainly located in its eastern Offshore part (deep waters). The Onshore zone (firm land) which has seven (7) oil blocks, is also the one where oil exploration began in Ivory Coast. The first exploration data, obtained between 1952 and 1954, allowed the discovery and exploitation of bitumen in the Eboïnda region. A stage which was the starting point of oil research in Ivory Coast.

Sangafowa-Coulibaly, Minister of Mines, Petroleum and Energy, commented:
"I do not hide my joy to see that after the many discoveries we have made since then in Offshore (deep waters), this new partnership with Elephant Oil on these 03 oil blocks in Onshore (dry land), will allow us to resume more effectively the search for hydrocarbons in this part of our sedimentary basin. I would therefore like to congratulate Elephant Oil which has decided to join forces with our national company PETROCI Holding in order to work alongside us in the development of Côte d'Ivoire. What makes this contract special is that we are in Onshore."

Elephant Oil has developed experience in the exploration of onshore oil blocks and the Minister in charge of Petroleum remains convinced that this experience will benefit Côte d'Ivoire through the signing of these 03 Production Sharing Contracts. He especially welcomed the shares obtained by the Ivorian party, in line with the vision of the President of the Republic. 52.5% of the profits will be returned to the State of Côte d'Ivoire. Of the remaining 47.5%, in the end 80% will go to Elephant Oil, while 20% will be returned to PETROCI Holding which will thus benefit from a non-paying share of 10% and a paying share of 10%. This will give it a total participation of 20% in this consortium.

"Elephant Oil believes in Côte d'Ivoire. It was in July 2022, in the Council of Ministers, that we received authorization from the government to sign these contracts. It took a little time because Elephant Oil had to comply with American legislation and we also had to overcome all the difficulties related to this signature," explained Sangafowa-Coulibaly.

He also congratulated PETROCI Holding, which is fully playing its role as spearhead of the development strategy of the exploration and production sector, by providing private partners with reliable data, in addition to high-level technical support, to enable them to choose the most promising blocks.

Matthew Lofgran, CEO of Elephant Oil, who showed his impatience to get off to a quick start, recognized that Côte d'Ivoire is a developed country, endowed with many natural resources, and announced that "in accordance with the law on local content, his company will work to create many jobs as the President of the Republic wants."