11

Agence de gestion et de coopération Agence de gestion et de coopération Sénégal – Guinée Bissau Sénégal – Guinée Bissau

AGCAGC

11th Africa oil and gas trade 11th Africa oil and gas trade and finance Conference and finance Conference

Nairobi 23-25 may 2007Nairobi 23-25 may 2007

L’Agence de gestion et de coopération L’Agence de gestion et de coopération entre le Sénégal et la Guinée Bissauentre le Sénégal et la Guinée Bissau

A DYNAMYC EXAMPLE OF SUB-A DYNAMYC EXAMPLE OF SUB-REGIONAL ECONOMIC INTEGRATIONREGIONAL ECONOMIC INTEGRATION

By Julio Mamadù BALDEBy Julio Mamadù BALDE

General Secretary of AGCGeneral Secretary of AGC

NOT AN OFFICIAL UNCTAD RECORDNOT AN OFFICIAL UNCTAD RECORD

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SUMMARYSUMMARY

I/- HISTORIC OF BOUNDARY DISPUTE SETTLEMENT SENEGAL / GUINEE BISSAU

II/- L’AGENCE DE GESTION ET DE COOPERATION ENTRE LE SENEGAL ET LA GUINEE-BISSAU

III/- PETROLEUM SECTOR

IV/- FISHERY SECTOR

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Senegal and Guinee-Bissau

are two border countries

linked by the history

and the geography.

The first was colonized by

France while the second

was managed before

the independence by Portugal.

I/-I/- HISTORICHISTORIC

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I/-I/- HISTORICHISTORIC ( (continuationcontinuation))

After the BERLIN Conference on 26 february After the BERLIN Conference on 26 february

1885,France and Portugal opened negotiations in 1885,France and Portugal opened negotiations in

october 1885,and agreed to conclude a Convention for october 1885,and agreed to conclude a Convention for

the delimitation of French and Portuguese ‘’possessions’’ the delimitation of French and Portuguese ‘’possessions’’

in West Africa. in West Africa.

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I/-I/- HISTORICHISTORIC ( (continuationcontinuation))

On 12 may 1886, the Convention was signed in Paris.

It defined only the land border between the

nowadays Guinee- Bissau and Senegal but not the

maritime boundary

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I/-I/- HISTORICHISTORIC ( (continuationcontinuation))

In february 1958, the Portuguese government In february 1958, the Portuguese government

granted an hydrocarbon exploration concession granted an hydrocarbon exploration concession

to ESSO Company off the coast of what was to ESSO Company off the coast of what was

then the Portuguese ‘’pronvince’’ of Guinee.then the Portuguese ‘’pronvince’’ of Guinee.

The concession raised a certain number of The concession raised a certain number of

objections from the government of France. objections from the government of France.

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A proposal was made to Portugal to negociate a A proposal was made to Portugal to negociate a

delimitation of the: delimitation of the:

- territorial waters;- territorial waters;

- and the continental shelf - and the continental shelf

between Portuguese Guinee and Senegalbetween Portuguese Guinee and Senegal

Negotiations were held in Lisbone (8-10 sept Negotiations were held in Lisbone (8-10 sept

1959)1959)

I/-I/- HISTORIC (continuation)HISTORIC (continuation)

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I/-I/- HISTORIC (HISTORIC (continuationcontinuation)) In 1960 France and Portugal In 1960 France and Portugal

agreed that the external limits of agreed that the external limits of

the maritimeborders which shallbe the maritimeborders which shallbe

defined by a defined by a

straight line orientated at 240°straight line orientated at 240°

from the point of intersection of the from the point of intersection of the

land border extention and the low-land border extention and the low-

watermark,represented for this watermark,represented for this

purpose by the Cape Roxo beacon.purpose by the Cape Roxo beacon.

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I/-I/- HISTORICHISTORIC ( (continuationcontinuation))

Sénégal obtained independence in 1960 and Guinee

Bissau became a sovereign state in 1973.

Guinee -Bissau requested Senegal in 1977 to open

negotiations on their maritime border, because it (Guinee

Bissau) was not aware of the existence of the 1960

Franco-Portuguese Agreement, which it immediately

considered as not binding.

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II/-AGC II/-AGC ((continuationcontinuation))

2-1/ ESTABLISHMEN OF AGC

On 14 october 1993,the Governments of Senegal and

Guinee-Bissau signed in Dakar an Agreement defining

the scope of the management of the maritime area in

conflict and the cooperation between the two countries.

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II/-AGC (II/-AGC (continuationcontinuation))

2-1 ESTABLISHMEN OF AGC

This Agreement créates an International Organisation for

the joint exploitation of the Common Zone.

This Organisation was named « AGENCE DE GESTION

ET DE COOPERATION ENTRE LE SENEGAL ET LA

GUINEE BISSAU (AGC) »

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II/-II/- AGC (AGC (continuationcontinuation))

2-2 THE COMMON AREA

The two countries decide to

share all the resources of the

Common Exploitation Zone

located between the Azimuths

268° and 220° traced starting

from the Cape Roxo, point of

intersection between the land

border between Senegal and

the Guinee-Bissau and the

coast.

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II/-II/- L’AGENCE DE GESTION ET DE L’AGENCE DE GESTION ET DE COOPERATION ENTRE LE COOPERATION ENTRE LE

SENEGAL ET GUINEE BISSAU -AGCSENEGAL ET GUINEE BISSAU -AGC

After long negotiations marked by differences about the

existence of this France-Portuguese Agreement, the

Governments of Guinea-Bissau and Senegal finally

agreed to set up a joint commission for the

administration and the management of the maritime area

in conflict dénominated « Common Exploitation Zone »

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II/-AGC (II/-AGC (continuationcontinuation))

2-3 RESSOURCES OF THE COMMON AREA

HYDROCARBONS;

OTHERS MINERAL RESSOURCES;

LIVING RESSOURCES (FISHERIES);

ANY OTHER RESSOURCES

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II/-AGC (II/-AGC (continuationcontinuation))

2.4 SHARING OF RESOURCES

FISHERIES- 50% : GUINEE – BISSAU- 50 % : SENEGAL

RESSOURCES OF THE CONTINENTAL SHELF( HYDROCARBON AND MINING)

- 80% : SENEGAL- 20% : GUINEE BISSAU

IN CASE OF NEW DISCOVERIES THIS ALLOCATION COULD BE REVISED ACCORDING TO THE IMPORTANCE OF THE DISCOVERY AND THE RESSOURCES

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II/-II/-AGC (AGC (continuationcontinuation))

2- 5/ Organisation of AGCOn June 12, 1995, an Agreement Protocole

concerning to the organisation and the operation of

the Agency, is concluded between the

Governments of Senegal and Guinee-Bissau.

Il sets up the organes governing

the agency and their different missions

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ORGANES

The High Authority made up of the Heads of the States or the Heads of the Governments or the people delegated by them ;

The General Secretariat ensured by a General Secretary (from Guinee-Bissau) assisted by deputy General Secretary (from Senegal) ;

The Entreprise SA, organ by which the Agency must exert the missions which are reserved for him in the Common Zone.

2- 5/2- 5/ ORGANISATION OF THE AGC ORGANISATION OF THE AGC ((continuationcontinuation))

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2- 5/2- 5/ ORGANISATION OF THE AGC ORGANISATION OF THE AGC ((continuationcontinuation))

MISSIONS

In the Common Exploitation Zone, the AGC has

full autonomy and management authority

which primarily comprised petroleum

resources, other no living resources and

living resources.

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2- 5/2- 5/ ORGANISATION OF THE AGC ORGANISATION OF THE AGC ((continuationcontinuation))

MISSIONS

In the mining and oil field :

To promote the activities of research and exploitation of the mining and oil resources ;

To undertake or make undertake all research and exploitation activities of the mining or oil resources of the Common Zone ;

To ensure the marketing of whole or part of its mining or oil production ;

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2- 5/ 2- 5/ ORGANISATIONS OF THA AGC ORGANISATIONS OF THA AGC ((continuationcontinuation))

MISSIONS In the maritime fishing field :

To promote the research and the exploitation of the living resources of the Zone ;

To ensure by itself or in cooperation with other states or other organisations the evaluation and management and follow-up of the marine ecosystem;

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2- 5/ ORGANISATIONS OF THA AGC 2- 5/ ORGANISATIONS OF THA AGC ((continuationcontinuation))

MISSIONSIn the maritime fishing field

To exert or authorize the execution of the fishing rights ;

To the access and exploitation conditions of the fisheries resources of the Zone;

To ensure the marketing of whole or part of its production biodiversity resources

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2-6/ 2-6/ SUCCESSIONSUCCESSION AND DURATIONAND DURATION

The AGC is the successor of the Republic of Senegal The AGC is the successor of the Republic of Senegal

and the Republic of Guinee bissau in terms of rights and the Republic of Guinee bissau in terms of rights

and obligations for the exploration and the and obligations for the exploration and the

exploitation of the ressources of the Common Zone.exploitation of the ressources of the Common Zone.

The Agreement is signed for a period of 20 years The Agreement is signed for a period of 20 years

with possibility to be renew.with possibility to be renew.

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III/-PETROLEUM SECTORIII/-PETROLEUM SECTOR

The petroleum ressources constitute the first wealf of the Common Exploitation Zone.

In this Zone the petroleum activities are governed by the 1998 Petroleum Legislation of the Republic of Senegal

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III/-PETROLEUM SECTORIII/-PETROLEUM SECTORBLOCKS OF AGC AREABLOCKS OF AGC AREA

The AGC-Zone is

presently divided into two

blocks for hydrocarbon

exploration ( DOME

FLORE and AGC

PROFOND

All blocks are now full

licensed

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III/- III/- PETROLEUM SECTOR PETROLEUM SECTOR ((continuationcontinuation))

3-1 DOME FLORE BLOCK The main structural features in this block are constituted

by the Flore and Gea salt domes;

This sector is characterised by the only significant oil accumulation discovered in the senegalese Guinee Bissau basin to date;

The oil is heavy (10 - 12° API).

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III/- III/- PETROLEUM SECTORPETROLEUM SECTOR ( (continuation continuation ))

3-1 DOME FLORE BLOCK ( suite)

Estimed oil in place 1 billion barrels

Several wells drilled in the flanks of the Flore and Gea

salt domes encountered lighter oil ( 33.6° API )

Présently Markmore Energy ( Malaysian) is opérqting in

this block since

January 2008 will be the last year of the first exploration

renewal.

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III/- III/- PETROLEUM SECTORPETROLEUM SECTOR ( (continuation continuation ))

AGC DEEP OFFSHORE BLOCK• AGC granted an exploration concession from 2000 to

2005 to AGIP(ENI) company and FUSION OIL AND

GAS NL. The geophysical data acquired by these two

companies show deepwater turbidite sandstone

reservoirs and a complex structural history with dynamic

salt.

• Ophir Energy (Australian) is operating in this block since

september 2006.

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IV/- IV/- FISHERY SECTORFISHERY SECTOR

Fisheries ressources constitute the second wealth of the Common Exploitation Zone

In 1997 AGC signed an agreement with the two Ministeries in charge of fischiries of Senegal and Guinea Bissau:

The Agreement gives full power the two states to

explore the living resources in the Common Area, under AGC Supervision

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IV/- IV/- FISHERY SECTOR (FISHERY SECTOR (continuationcontinuation))

• Currently AGC is holding Agreement with several world

Organisations dealing in framework of Environment and

Biodiversity to protect the living resources in the area

( WWF, ECOWAS, FAO)

• All Fisheries activities are governed by the Guinea

Bissau legislation:

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CONCLUSIONCONCLUSION

• The 1993 Agreement signed by Senegal and Guinee-

Bissau for the management of the resources of the

Maritime Zone in conflict, is a dynamic example of

economic cooperation at the service of development

THIS MODEL OF MANAGEMENT OF THE COOPERATION BETWEEN THESE TWO COUNTRIES MADE SCHOOL IN AFRICA.

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THANK YOU VERY MUCH FOR THANK YOU VERY MUCH FOR YOUR KIND ATTENTIONYOUR KIND ATTENTION