A window into Ivorian state-owned companies

Côte d’Ivoire’s 2012 EITI Report outlines some key revenues and production figures.

The extractive sector in Côte d’Ivoire has generated more revenue for the government than in previous years. The country’s latest EITI Report, covering the year 2012, documents an almost threefold increase in revenue from the oil and gas and the mining sectors collectively. For the first time, detailed information is provided on the role of state-owned enterprises.

N’Dri Koffi, President of the multi-stakeholder group and technical advisor of Energy, Ministry of Economy and Finance, said: “The quality of the 2012 EITI Report has improved, however further efforts still need to be made. The 2013 and 2014 EITI Reports will be elaborated in the spirit of improving quality.”

State-owned companies heavily involved in extractive sector

In Côte d’Ivoire, state-owned companies (SOEs) engage in a wide range of activities along the value chain - regulating, operating, buying, selling, importing and exporting oil, gas and minerals.

State-owned companies manage the government’s share of production, which it receives from companies extracting the resource. In Côte d’Ivoire, companies pay their dues mainly in form of in-kind contributions. The revenues generated by the state-owned companies belong to the government.

In the case of oil, the government received more than 4 million barrels in 2013. Around three million barrels were marketed and exported by PETROCI (the state oil company).

The report does not go into great detail on the transactions within PETROCI with respect to the prices, nor the market and sales volumes.

More disclosure by state-owned companies on these aspects would further increase the citizens’ understanding of the extractives sector and contribute to the transparency efforts of the government.

More revenue but less production

Total revenues reported in the 2011 EITI report amounted to US $394 million, whilst in 2012, this figure increased to US $1 billion. The rise in revenue can be attributed to the inclusion of new revenue types within the scope of EITI reporting, such as customs duties and employee taxes.

Revenues from the oil and gas sector increased by 258%, from US $ 369 million in 2011 to US $ 955 million in 2012. Revenues from the mining sector increased by 246% from US $ 25 million in 2011 to US $ 62 million in 2012.

This increase in revenue was mainly due to increased prices, especially of oil and gas, and the increased scope of EITI reporting.  It was not linked to an increase in production. In fact, total oil production in Côte d’Ivoire decreased by 20%, down to 11 billion barrels in 2012 from 13 million barrels in 2011.

 

For more information on EITI in Côte d’Ivoire, visit their website at www.cnitie.ci or the country page on eiti.org.