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Cote d'Ivoire
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Offshore Oil and Gas Project-- BLOCK CI-11
In the late 1980s, oil production in Côte d'Ivoire was in sharp decline and most foreign companies had left the country. Côte d'Ivoire was also heavily indebted, and with the exception of hydroelectric power during the wet season, was totally dependent on imported fuels as sources of power. In order to attract investment and foreign oil and gas industry back to the country, in 1989 the government asked the World Bank to help develop new legislation and tender packages. As a result of this work, Ocean Energy, an independent oil and gas based in Houston, Texas acquired block CI-11, the first to be acquired by a foreign company in several years. The CI-11 project is implemented through an Unincorporated Joint Venture (UJV), currently comprising of Petroci, the national petroleum corporation of Côte d'Ivoire (20%); Ocean Energy Incorporated (OEI) a US oil and gas independent (48%); IFC (19%) and; SK Corporation (SK) a Korean energy company (13%).
This project was Ocean Energy's (then United Meridian Corporation) first major overseas venture. IFC's presence and involvement was sought for (i) political comfort; (ii) mobilization of additional finance through a B Loan syndication; (iii) IFC's "honest broker" role with the government; and (iv) support for future project expansions. IFC's investment in CI-11, which started in April 1993, has included equity, IFC "A" and "B" loans to the three original private sector partners (United Meridian Corporation, Pluspetrol and Global Natural Resources), totaling of US$118.7 million. The US$70 million loans have been since repaid.
The oil produced is exported, the gas is being used locally as feedstock for power generation and liquid petroleum gas (LPG) is stripped from the gas at Ocean Energy's Lion LPG Plant in Abidjan. The CI-11 project has been the prime catalyst in opening up the Ivorian hydrocarbon sector to foreign investors, and has become a key part of the government's energy development program. Since then, a number of other gas developments have come on stream and as a result, the state utility companies are no longer dependent on imported heavy fuel oil, but run on clean natural gas from the Panthere and Lion fields within Block CI-11 and the other private sector operator fields.
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