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The government of the Central African Republic (C.A.R.) is pleased to announce the opening of international bidding for all acreage within the country. This page presents an overview of the petroleum geology of the country's sedimentary basins to highlight the exploration opportunities.
Location Map
Exploration activity resulted in the drilling of the Aoukale #I well by Esso International in 1986. The well was drilled to a depth of 2477 m and encountered numerous oil shows within a predom- inantly sand section. A hydrocarbon analysis sug- gested that the oils migrated through the area with- out being trapped. No other wells have been drilled within the Central African Republic and exploration rights within the Permit H area expired in 1988. No other permits are currently active within the country.
Exploration within the Salamat and Doseo basins was initiated with a regional gravity survey in 1970. This study was augmented with additional gravity data acquired during a seismic campaign in 1977. In 1973, CGG conducted an airborne magnetometer survey for Conoco. These data consisted of approximately 10 800 flight-line km over an area of 91 000 km'. These preliminary surveys led to the placement of the first seismic survey in 1975. Since then, over 3600 km of seismic data have been acquired and processed over the Salamat and Doseo basins. The latest seismic survey was recorded in 1985. During 1992, Western Geophysical reprocessed 240 km of seismic data from the Doseo and Salamat basins with the goal of accentuating the stratigraphic character of the data. The reprocessing techniques resulted in a significant improvement in the quality of the seismic sections, allowing for a refined structural and stratigraphic interpretation of the basins.
Hydrocarbon occurrences have been ccnfirmed within the Doba and Doseo basins of neighboring Chad where several wells have been tested at over 1,500 BOPD. Commercial quantities of oil are currently being put into production from the Unity and Heglig fields of the Muglad basin of central Sudan. These fields are projected to be producing over 40,000 BOPD by mid1995.
Tectonics
The earliest stage of rifting occurred during the Neocomian. This period lasted until the Albian when the rifts became fully developed. Sedimen tation within the rift basins was dominated by continental processes.
During the Late Cretaceous, the basins underwent a sag stage possibly in response to isostatic adjust ment. During this time, the western-most basins in Nigeria and Niger underwent marine transgression. The eperic seas reached their maximum extent into the western Doba basin during the Santonian. Con tinental sedimentation continued within the Doseo and Salamat basins during the Late Cretaceous.
The sag stage was suddenly culminated during the Santonian by a significant tectonic pulse. A change in sea floor spreading directions resulted in a re alignment of the regional stress field. This change resulted in renewed dextral shear along the Central African Shear. Detormation included compressive folding of the Benue trough of Nigeria, approximately 50 km of dextral oft.set along the Central Atrican Shear, and extension of the Muglad basin of Sudan.
While no wells have been drilled within the Central African Republic portion of the basin, several wells have tested significant amounts of hydrocarbons within the Chadian portion of the Doseo and Doba basins. These wells include the Managara #I with 1,875 BOPD and Miandoum #I with 1,660 BOPD.
Like the Doseo basin, the Salamat is dominated by normal and reverse faults aligned in a northwest southeast en echelon pattern. These faults are asso ciated with a large through-going dextral shear zone. This zone is located near the southern boundary of the basin and is aligned in an east-west direction. In association with the master shear zone are numerous antithetic shear zones, aligned in a northwest-southeast direction.
Sediments within the basin generally become older toward the east as a result of Late Cretaceous basin inversion.
Reservoir Rocks Numerous reservoir quality, fluvial, and lacustro-deltaic sandstones have been encountered by drilling within the Salamat basin.
These sands have well-developed porosity and permeability, with little indication of adverse diagenetic activity.
Stratigraphic Cross-Section
July 1993
In accordance with the Central African Republic government's policy to stimulate petroleum exploration and exploitation, those contracts are being offered under new legislation dated May 25, 1993. Copies of the relevant legal and contractual documents are available.
Applications may be submitted at any time from December l, l 993 with respect to areas declared open and which are not then covered by existing petroleum exploration and exploitation rights. Applications received after December l, 1993 will be dealt with in the order received. No exploration blocks have been pre defined by the government; thus, applications may cover any available area subject to Section II.2 below.
The guidelines for applications are presented in the following sections. There are no application fees or bonus payments.
The successful applicants will generally be those who offer the most comprehensive exploration work programs regarding the selected exploration areas.
Further details or inquiries concerning the preparation of applications can be obtained from the Ministry of Defense, Veterans, Energy, Mines, and Hydraulics ("Ministere de la Defense, des Anciens Combattants, de l'Energie, des Mines, de la Geologic et de l'Hydraulique"), pursuant to Section III.3 below.
It is anticipated that the exploration period would normally consist of an initial term of four (4) years, with two renewals of three (3) years each, subject to satisfdctory comple tion of the work obligations of the previous period. However, duration shall be consistent with the proposed exploration work program.
(b) Duration of an exploitation concession (Article 6 of the model contract) This period consists of a term of twenty-five (25) years from the granting of an exploita tion concession, which can be renewed.
(ii) U.S. $4 per sq km annually during the first renewal of an exploration permit;
(iii) U.S. $8 per sq km annually during the second renewal of an exploration permit and any extension thereof;
(iv) U.S. $100 per sq km annually for an exploitation concession;
(v) Fees under paragraphs (i) to (iv) are not subject to an escalation provision.
Ministre de la Defense, des Anciens Combattants,
de l'Energie, des Mines et de l'Hydraulique
B.P. 26
Bangui (Republique Centrafricaine)
and should be sent by registered mail or delivered by hand.
(b) Applications should be submitted in a sealed envelope marked:
"Application for a Petroleum Exploration Permit" - "CONFIDENTIAL"
"Demande d'un Permis de Recherche d'Hydrocarbures" - "CONFIDENTIAL"
(c) Applications should be duly signed by the authorised representative of the applicant.
Applications from individual companies, as well as from groups of companies, will be considered.
(d) There is no payment of any application fee; however, the purchase of the Data Package prepared by the Ministry is a prerequisite to making an application.
(a) The description of the exploration area to which the application applies, with its coordinates and surface, along with a geographical map on a scale of l: l00,000 or l :200,000, and the reasons sustaining the selection of that area and the adequacy of the proposed minimum work obligations in support of the applicant's exploration concepts for the area;
(b) Name, legal nature, address, and nationality of the applicant;
(c) Information concerning the applicant's place of incorporation, its principal place of busi ness, the names of the president and managers, the composition of the board of directors, the name of the auditors, and its capital, including the amount of share capital and the names and addresses of any shareholders representing at least one-tenth of the shares;
(d)The names of the persons who hold the signature of the applicant;
(e) Evidence of the financial standing and technical qualifications of the applicant regarding the exploration for and production of petroleum;
(f) Copies of the by-laws, certificate of incorporation and the annual reports and audited accounts of the applicant, and of any corporate body having control of such applicant for the last three years;
(g) Document providing the legal capacity of the person who signed the application;
(h) The name and address of the legal representative of the applicant in the Central African Republic;
(i) A short report ("notice d'impact") stating how the general exploration work program intends to take into account environmental concerns;
(j) Proposal made by the applicant in respect of the major terms of the concession contract as specified in the preceding section.
Where the application is made by a group of applicants, information mentioned in paragraphs
(b) through (h) shall be provided for each individual applicant, together with the percentage interest of each participant in the group and the name of the operator.
Mr. Christophe Nganzi
Secretaire General
Ministere de la Defense, des Anciens Combattants,
de l'Energie, des Mines et de l'Hydraulique
B.P. 26
Bangui (Republique Centrafricaine)
Tel: 236.61.46.72
Fax: 236.61.46.72
Telex: 5241 RC
The contract will be signed with a successful applicant following negotiation of a concession contract in a form satisfactory to the Minister.
The Minister reserves the right to accept or reject any application received without being oblig ed to justify his decision.
Bangui, July 9, 1993
Christophe Nganzi
Ministre de la Defense, des Anciens Combattants,
de l'Energie, des Mines et de l'Hydraulique
Central African Republic
Promotion of the Petroleum Potential
Summary of New Petroleum
Legislation and Model
Concession Agreement
July 1993
Under the Petroleum Code, the Minister in charge of petroleum (for the time being, the Minister of Defense, Veterans, Energy, Mines, and Hydraulics) is empowered to enter into petroleum contracts and for that purpose, a model concession contract was prepared as a basis for negotiations with international oil companies. The following is a summary of the main provisions of all these documents.
Under the Petroleum Code, the State may conduct petroleum operations either directly or through petroleum contracts entered into with a qualified company (Article 5). The nature of the petroleum contract is specified in Article 32. When it is a concession contract, as selected for the 1993 model contract now proposed to the oil companies, the following petroleum mining titles shall be issued: a petroleum exploration permit (as provided for under Part Ill of the Petroleum Code) and, with respect to each commercial discovery, an exploitation concession (as provided for under Part IV). The various issues to be specified in a petroleum contract are set forth in Article 33.
The rights and obligations relating to petroleum operations are stated in Part VII, in particular, regarding occupation of land and conduct of operations. The right of trans portation of petroleum by pipelines is the purpose of Part VI.
Provisions relating to taxation, customs, and finance are included in Part Vlll. The Petroleum Code provides for annual rentals, a royalty on production at a maximum rate of 12.5% for oil and 5% for gas, the payment of corporate tax at a rate of 50% (or at the rate specified in the contract) and, as the case may be, a supplementary petroleum payment as stipulated in the contract.
A number of tax exemptions are specified in Articles 74 and 75, as well as the export/ import relaxations (Chapter II of Part VIII) and foreign exchange concessions (Chapter 111 of Part VIII). The purpose is (i) to make precise and streamline the tax regime applicable to petroleum operations within the framework of the existing General Tax Code, and (ii) to give incentives to promote investment, such as full consolidation of income and expenditure for all petroleum operations in the country, unlimited carrying forward of losses, no withholding tax on dividends paid to shareholders, exemption from turnover taxes, etc. In addition, the tax system has been structured in a manner to qualify for foreign tax credit.
Part IX deals with applicable law, disputes (that may be settled through international arbitration), infringement, and penalties.
Overall, the Petroleum Code was drafted in order to provide a fair and sound general framework to govern petroleum operations in the Central African Republic, while keep ing enough flexibility for the negotiation of petroleum contracts with international oil companies.
It also specifies the conditions for administrative supervision of petroleum operations carried out under a contract.
The petroleum exploration and exploitation contract will be entered into between the Central African Republic (represented by the Minister in charge of petroleum) and a company or a group of companies. Each contract shall be approved by Decree.
The contract provides for the terms and conditions applicable to an exploration permit as well as to any exploitation concession that may result from such a permit in the event of a commercial discovery. The duration of the contract will consist of the period of validity of the permit, including renewals and extensions, and the period of validity of any con cession resulting from such a permit.
A permit is granted under a contract for an initial exploration period and may be renewed twice if the company so requests, provided it has fulfilled its obligations. The duration of the initial exploration period and each renewal is subject to negotiation prior to the sign ing of the contract.
During the initial exploration period and, where applicable, during each renewal, the company will carry out the minimum exploration work obligations. There are no expen diture obligations, but a value is assigned to work obligations for assessing compensation in case of nonperformance.
Following declaration by the company of a duly appraised commercial discovery and after submission of a development plan, the company will obtain an exploitation conces sion for an initial duration of 25 years, which may be renewed.
Valuation of petroleum will be assessed on the actual realized price or on a fair market value when necessary. Royalty rates are different for crude oil and natural gas. The com pany is subject to corporate tax on its net profits attributable to all its petroleum opera tions in the Central African Republic, under one or several contracts, in accordance with the provisions of the General Tax Code supplemented by the Petroleum Code. The income tax rate is 50% unless otherwise provided. Pursuant to the Petroleum Code, tax exemptions given to the company, its shareholders and affiliates, as well as to its subcon tractors, are also mentioned.
In addition, the company may benefit from special incentives, e.g., depletion allowance and investment credit with respect to exploration expenditure.
On the other hand, the company will be liable to a supplementary petroleum payment only when the so-called "R" ratio (accumulated net revenues/accumulated investments), as defined in the contract, reaches a certain value. The supplementary petroleum payment will be negotiated prior to signing the contract.
There is no State participation option under the contract, and no bonuses will be payable.
Accounts will be maintained in U.S. dollars.
The model contract also provides for a number of other provisions, such as export and import, foreign exchange, applicable law, stabilization of conditions, international arbi tration, accounting procedure, etc.