Canadian Natural Resources (CNR) plans to suspend $300-400 million in planned investment on its Ivory Coast offshore blocks until a recover in crude oil prices in the global market.

For the last two years, the company had expended about $1.5 billion on the drilling of new wells on its Espoir and Baobab fields.

CNR had increased its output from 18,000 bpd in late 2013 to the current level of between 40,000 and 45,000 bpd.

“We were obliged to suspend our operations due to the low barrel price. We plan to restart if prices rebound. We think if we restart drilling we could add 5,000 to 10,000 bpd on current output,” the company’s general manager in Ivory Coast said.

Investments for the last two years increased natural gas output from CNR's blocks to around 70 million cubic feet per day from 35 million in 2013.

“If there are new discoveries, Ivory Coast can be self-sufficient in gas. Today Ivory Coast faces a shortfall of 30 to 40 million cubic feet per day,” the general manager told upstream news.

While natural gas deposits were developed for domestic consumption, the country has abandoned its energy sector for years as the government shifted its focus on developing agricultural exports.

Ivory Coast's per day crude oil output is around 53,000 bpd, but the country’s offshore blocks, are at present attracting rising interests.

Companies currently carrying out exploration in Ivory Coast or preparing to do so includes Total, ExxonMobil, Anadarko, and Tullow Oil.

Anita Fatunji