Front Matter

Preface

CONTENTS

FOREWORD

GENERAL INTRODUCTION

PART I: GENERAL INFORMATION ON THE OIL INDUSTRY AND THE CHALLENGES OF RESEARCH AND EXPLOITATION IN WEST AFRICA

Hydrocarbon sector value chain

Different phases of upstream oil and the roles of states

PART TWO: OIL CONTRACTS AND OIL TAXATION IN WEST AFRICA

Tax regimes in the oil sector

4. Comparative study of tax regimes in selected West African countries

PART THREE: POLITICAL STABILITY, GOVERNANCE AND CORRUPTION IN THE OIL SECTOR

Key socio-political determinants of oil sector performance

West Africa – in-depth country analysis

GENERAL CONCLUSION

GLOSSARY

BIBLIOGRAPHICAL REFERENCES

List of Figures

Figure 1: Petroleum sector value chain 16

Figure 2: a and b Map showing the MSGBC Basin and Map showing the basins of the northern part of the Gulf of Guinea in West Africa 20

Figure 3: Map showing the sedimentary basins of Mali and Niger 20

Figure 4: Synthetic diagram showing the different oil cuts 30

Figure 5: Different phases of upstream oil 32

Figure 6: Process for allocating oil blocks to the IPC for petroleum exploration and exploitation 35

Figure 7: Gravimetric acquisition (a) showing anomalies in the Coastal Sedimentary Basin of Benin (CGG 2013) and aeromagnetic (b) to characterize the basement and sedimentary formations 37

Figure 8: 3D acquisition principle (a) and seismic cube (b) 38

Figure 9: Seismic amplitude anomalies showing Brightspots and Flatspots 38

Figure 10: Electromagnetism coupled with seismic reflection showing the resistivity contrast at the traps highlighted by seismic 39

Figure 11: Geological section showing the stratigraphic extent of the fictitious Deer-Boar oil system at the critical time (250 Ma). The thermally immature source rock is above the oil window. The active source rock is down-dip of the oil window (Magoon and Dow 1994) 40

Figure 12: Geoseismic section showing petroleum systems in the Benin Coastal Sedimentary Basin, Kerr McGee, 2003 41

Figure 13: Seismic interpretation showing a structural trap (anticline) 42

Figure 14: Some types of traps 42

Figure 15: Depth map showing the roof of a tank 43

Figure 16: Photos showing the core library of Côte d’Ivoire at the Directorate of the PETROCI Analysis and Research Center 47

Figure 17: Methodology Tank Evaluation 50

Figure 18: Diagram showing a reservoir model (Vilgeir Dalen, StatoilHydro, 2007) 51

Figure 19: Oil field production profile showing the life cycle of an oil field 55

Figure 20: Cash flows during the different phases of upstream oil activities (Dr. Alfred Kjemperud, 2007) 62

Figure 21: Economic Value of Hydrocarbon Resources 65

Figure 22: Distribution of income from production (After Johnson, 1995) 66

Figure 23: Classification of tax systems 67

Figure 24: Graph showing the cost stops applied in selected West African countries 75

Figure 25: Simplified organizational chart showing the share of the State and the Contractor in the taxation associated with the CPP of Benin 85

Figure 26: Simplified Organizational Chart Showing the State and Contractor’s Share of the Taxation Used in Ghana’s Model Contract 86

Figure 27: Simplified organizational chart showing the share of the State and the contractor resulting from the taxation associated with the CPP of Côte d’Ivoire 87

Figure 28: Simplified organizational chart showing the share of the State and the Contractor in the taxation associated with the CPP of Nigeria 88

Figure 29: Simplified organizational chart showing the share of the State and the Contractor resulting from the taxation associated with the Senegalese CPP 89

Figure 30: Simplified diagram showing the share of the State and the Contractor resulting from the taxation associated with the CPP of Niger 90

Figure 31: Graph showing the share of net profit accruing to the CPI and the States according to the tax regime applicable in these States 92

Figure 32: Graph showing the distribution of the cash flow between the government and the contractor considering 100 barrels of oil extracted 92

List of Tables

Table 1: Estimation of hydrocarbon resources in West Africa 17

Table 2: Daily output of countries (Trading Economics, 2025) 18

Table 3: Type of crude oil in selected West African countries 21

Table 4: Calculation of financial losses resulting from a measurement error of 0.4 % 58

Table 5: Summary of ad valorem royalty rates applied in selected West African countries 73

Table 6: Oil-profit sharing mechanisms in selected West African countries 78

Table 7: Profit tax rates applied in selected West African countries in the oil sector 80

Table 8: State participation rates in selected West African countries 81

Table 9: Summary of the key tax terms for determining the share of the parties’ overall cash flows for oil 83

Table 10: Distribution of the net revenues (share) of the State and the Contractor arising from the tax regimes of the petroleum laws and regulations of the countries studied 91

Table 11: Cash flow representing the share of each part per 100 barrels of oil produced 91

Abbreviations, Acronyms and Abbreviations

ABEX : Abandon Expenditures

AFREC: African Energy Commission

IEA: International Energy Agency

APPO: Organization of African Petroleum Producers

AVO : Amplitude Variation with Offset

API : American Petroleum Institute

BBL/D/1K: One Thousand Barrels Per Day

BCF: Billion cubic feet

CAPEX : Capital Expenditures

ECOWAS: Economic Community of West African States

CO2: Carbon Dioxide

CPI: International Oil Company

CPP: Production Sharing Contract

CNPC: China National Petroleum Corporation

UNCTAD: United Nations Conference on Trade and Development

DHI: Direct Hydrocarbons Indicator

DPB : Benin Oil Depot Company

DW: Deep Water

IMF: International Monetary Fund

GAO: West Africa Gas Pipeline

LNG: Liquefied Natural Gas

GNPC : Ghanean National Petroleum Company

LPG: Liquefied Petroleum Gas

EITI: Extractive Industries Transparency Initiative

MMBBLS: Million de barils

NNPC: Nigerian National Petroleum Company

NOx: x Nitrogen oxide

OPEX: Operating Expenditures

NATO : North Atlantic Treaty Organization

PDO: Development and Operation Plan

PETROCI: National Company of Petroleum Operations of Côte d’Ivoire

PETROSEN: Société Nationale des Pétroles du Sénégal

GDP: Gross Domestic Product

PPS: Sèmè Oil Project

PSA : Production Sharing Contract

SAPETRO: South Atlantic Petroleum

SAR: Société Africaine de Raffinage

SIR: Société Ivoirienne de Raffinage

SMB: Multinational Bitumen Company

SONANGOL : Société Nationale des Pétroles de l’Angola

SONATRACH: National Hydrocarbons Company of Algeria

SONIDEP: Nigerien Oil Company

SORAZ: Zinder Refining Company

SW : Shallow Water

TCF: Trillion Cubic Feet (1000 BCF)

TOR: Tema Oil Refinery

UDW: Ultra Deep Water

VSP: Vertical Seismic Profil

WAPCo: West African gaz Pipeline Company

WAPCO: West African Oil Pipeline Company

AfCFTA: African Continental Free Trade Area