Associated gas will have development priority over gas field gas, says the country's mines and energy minister.
Lamine Fadika said, "We cannot justify flaring associated gas in Africa with our finite hydrocarbon resources. Also, our associated gas is plentiful, it can be inexpensive, and it can cover our electric energy demand for the short and medium term at low cost."
Meanwhile, UMC Petroleum Corp., Houston, is negotiating a gas contract with Cote d'Ivoire covering its 1994 Lion oil and gas and Panther gas/condensate discoveries on its CI-11 concession area (OGJ, May 9, p. 88).
Initial reserves estimates are 50 million bbl of oil and 50 bcf of gas at Lion and 283 bcf of gas at Panther, which also flowed large volumes of condensate.
Pending approval of the gas contract and development plan for the fields, UMC plans to spud 2 Lion in fourth quarter 1994, 3 and 4 Lion in first quarter 1995, and 5 Lion in second quarter. It would complete 1 Lion and drill the 2 Panther in third quarter 1995.
GAS PRIORITY
The associated gas priority move opens the market to compete for supplies of gas to state owned Petroci. Petroci plans to use part of the gas to upgrade gasoline at its Vridi refinery and resell the rest to independent gas fired electric generating plants.
Similar projects will be expected in connection with other oil and gas fields, such as Espoir, for which Petroci is seeking an international partner to reestablish production.
Fadika said Cote d'Ivoire needs electricity from associated gas to balance the country's economic and industrial sectors, improve feasibility of developing a billion dollar nickel deposit under concession to Falconbridge of Canada, and reduce electricity costs to the average consumer.
The government has decided to push forward with 1995 installation of a 150 mw gas fired power plant.
Fadika expressed interest in reconsidering Cote d'Ivoire's role, if any, in the West African natural gas pipeline being considered to bring Escravos gas from Nigeria west through Benin, Togo, and Ghana. He said a western extension into Cote d'Ivoire may now make economic sense and increase reliability of supply for many potential industrial user s along its route.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
