Benin

Investment & Operational Criteria

Key Indicators

Risk Premia

0.875

%

Outlook

Neutral

Rating

CCC|3H|±

Ranking

70

Reserves (1P)

Total

mm boe

Oil

53

%

Summary

The O&G sector remains open to smaller E&P participants as the region is largely overlooked by the majors. Stable fiscal regime allows for confidence in long term investment, however, there is no Stability Provision in the standard form PSC. All of these factors lead to a Neutral outlook.

Updated

May 28, 2021

Country Basics

Region

Africa - West

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

BeninBenin

Western Africa, bordering the Bight of Benin, between Nigeria and Togo.

Outline

Tax Regime
Type

PSC/PSA

Tax Regime
Notes

The tax and legal regime applicable to oil companies operating in Benin depends on the date on which the petroleum contract was signed. Petroleum contracts signed with the Beninese Authorities before 17 October 2006 are governed by the Petroleum Code dated 13 April 1973

Investment & 
Operational
Climate

Benin’s overall macroeconomic conditions were positive in 2019. According to IMF estimates, GDP growth increased from 6.7% in 2018 to 6.9% in 2019. The COVID-19 pandemic and Nigeria’s partial closure of its borders beginning in August 2019 are expected to slow GDP growth to 3.2% in 2020. Port activity and the cotton sector are the largest drivers of economic growth. Telecommunications, agriculture, energy, cement production, and construction are other significant components of the economy. Benin also has a large informal sector. The country’s GDP is roughly 51.1% services, 26.1% agriculture, and 22.8% manufacturing.

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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Africa - West

Countries

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