The downstream oil industry in the Republic of the Seychelles is an important element in the economy of the country accounting for over 25% of its imports and supplying 95% of its commercial energy consumption needs.
The Seychelles has no upstream oil industry. Since the 1970s some geophysical and geological exploration has taken place with minor exploration drilling. The geochemical analyses and exploration data from its offshore acreage indicate potential for commercial production.
In January 2005 the government of the Seychelle has accepted a bid from a US prospecting company to search for oil in its waters, ending a nearly 10-year hiatus in petroleum exploration. The Seychelles National Oil Company (SNOC) and the Seychelles Petroleum Company (SEPEC) approved an offer from PetroQuest International an energy development firm based in the southern US state of Louisiana. Under the terms of the agreement, PetroQuest will explore for oil and natural gas in a 30 000-square kilometre area in the Seychelles' southern shelf. Four locations have been approved for exploration: the Constant and Topaz banks and the waters surrounding the Farquhar and Coetivy island groups.
The industry is regulated by the Minister of Industry. The current Minister of Industry is Mr Ralph Adam.
While Seychelles as yet has no upstream oil industry, the results of
geophysical surveys, geochemical analyses and exploration data from its
offshore acreage indicate potential for commercial production. The
Seychelles National Oil Company (SNOC), a
state-owned entity established in 1984 to implement petroleum policies and
advise the Government in dealing with petroleum-related activities, has been
active in publicising the hydrocarbon potential of the Seychelles to the
international oil community. Enterprise Oil has so far drilled an appraisal
well in the southern Constant Bank offshore area although this well was declared
dry in Aug 1995.
The Seychelles Model Petroleum Agreement is designed to create a
favourable environment for investment in petroleum exploration by oil companies.
Its aim is to maintain a flexible package to encourage the development of
small fields and to ensure a fair division of returns for production from
profitable fields.
Seychelles is a modern state with good infrastructure to facilitate
petroleum operation activities. SNOC, Seychelles
National Oil Company, has recently released and interpreted new data, and the
new geological models have established interesting exploration opportunities.
This information is highlighted in a Technical Atlas and SNOC is making this and
other data available to the industry.
The economic terms for exploration and production in Seychelles are laid
down in a modern concession type model agreement and the major provisions are
summarised in this brochure.
SNOC will be pleased to visit your company or, if you prefer, you are
welcome to Seychelles to discuss petroleum exploration opportunities and examine
the data.
