6.250
%
Neutral
79
mm boe
10
%
The country remains a difficult place to undertake investment. While Chinguetti represents the last significant find for the region, the actions of the government retrospectively for what turned out to be a flop, remains a guide for future investment.
February 1, 2024
Africa - North
mm bbl
bcf
Western Africa, bordering the North Atlantic Ocean, between Senegal and Western Sahara.
PSC/PSA
Production Sharing Contract ("PSC")-based fiscal regime. The State has the option to take 12% in any development licence, and to increase its equity when production exceeds a negotiated threshold. Signature bonuses and a range of production bonuses and other rentals are payable. There is no royalty; cost recovery ceilings are negotiable, whilst profit oil splits are biddable and are based upon production rates and water depth. The contractor is also liable for income tax.
On December 29, 2022, Mauritania’s National Assembly approved the GIRM budget for 2023. The budget is approximately $3bn, which is an increase of $88mm (3.03%) compared to the amended national budget in 2022. The 2023 operationalizes for the fourth year the implementation of President Ghazouani’s campaign commitment (Taahoudaty, meaning “my commitments” in Arabic) which reflects the President’s vision to promote economic and social development that is equitable and more inclusive. The budget also aims to raise the level of national economic activity after the negative impact of the COVID-19 pandemic in order to achieve a strong and equitable economic growth that takes into account good governance, social justice, and sustainable development. With Greater Tortue Ahmeyim (GTA) natural gas production expected to commence around December 2023 or the first quarter of 2024, Mauritania is positioned to become a major global energy partner and gas producer and a key regional player in Africa. With its world-class renewable energy potential, Mauritania can enhance access to affordable energy and potentially enable clean energy to be converted to green hydrogen. Green hydrogen is an attractive resource for Mauritania’s energy transition, both for its potential to boost investment and for its promising role in decarbonizing heavy industries.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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