Côte d’Ivoire: Crude oil for natural gas swaps

In the 1980s, Côte d'Ivoire’s government decided to focus on using natural gas for electricity generation, rather than prioritising crude oil production and sales. The government introduced a system of crude oil-for-natural gas swaps, exchanging part of its crude oil production for natural gas. This approach ensures a steady supply of fuel for the country’s power plants, which play a vital role in meeting domestic energy needs and exporting electricity to neighbouring countries.

Under this arrangement, the state-owned company PETROCI swaps crude oil with natural gas-producing companies. PETROCI earns a commission on the natural gas sales, which it deducts before transferring remaining payments to the Treasury. The gas is then provided to CI Energies, which generates and sells electricity, contributing further payments to the Treasury for the gas it receives.

Assessing the value of swaps

EITI reporting in 2021 provided data on these swaps for the period from 2015 to 2019, allowing for analysis of their value and alignment with market rates.

A key focus of the EITI’s analysis is whether the government’s crude oil revenues in these swaps correspond to the value of the natural gas it received. While the data shows a small imbalance – approximately USD 180,000 over five years, where the value of natural gas exceeded that of crude oil – it is important to interpret these results in context. This imbalance represents a fraction of the overall value of the swaps and may reflect broader policy priorities, such as ensuring energy security.

Crude oil-for-natural gas swaps raise important questions about fairness and efficiency compared to conventional sales. However, it is also worth noting that such policies might prioritise broader economic or energy goals, potentially justifying minor imbalances. Further expert analysis could help clarify how these arrangements align with national objectives and market benchmarks.

By improving transparency and public understanding of these exchanges, the analysis supports better governance and oversight of Côte d’Ivoire’s natural resource management, in line with EITI Requirement 4.2.

This analysis is based on data scraped from Côte d’Ivoire’s 2015-2021 EITI Reports. Explore more data on Côte d’Ivoire EITI website.