Mali - Petroleum Exploration Promotion Project

Documentof FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-3004-MLI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION 'liO THE FXECUTIVE DIRECTORS ON A PROPOSED CREDIT THE REPUBLIC OF MALI FOR A PETROLEUM EXPLORATION PROMOTION PROJECT April 1, 1981 y _ _ _ This document bas s restricted tistribution ud may be usetl by recipients only in the perfonn nce of their ofEchl dwties Its eontents by not otherwisc be disclosed wvithat World Ihnk suthorization  CURRENCY EQUIVALENTS Currency Unit = Malian Franc (MF) MF 1 Million = US$2,273 US$1 = MF 440 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS BEICIP = Bureau d'Etudes Industrielles et de Cooperation DHE = Directorate of Hydraulics and Energy DNGM = National Directorate of Geology and Mines HD = Hydrocarbon Division MID = Ministry of Industrial Development PPF = Project Preparation Facility SNEA = Societe Nationale Elf Aquitaine  FOR OFFICIAL USE ONLY MALI PETROLEUM EXPLORATION PROMOTION PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Mali Amount: SDR 3.1 million (US$3.7 million equivalent) Terms: Standard Project Description: The project would finance technical assistance to help the Government evaluate the hydrocarbon potential of the Taoudeni Basin and to strengthen institutional capabilities for energy planning. Technical assistance would be provided for three tasks: (a) Exploration. Under a PPF, the Basin was promoted to foreign oil companies and contracts were successfully negotiated for two oil wells. Activities of the compa- nies would be monitored for integrating the data col- lected into the Government's data base. An accounting system would be set up designed to monitor, control and audit expenditures by the companies. (b) Research. Technical evaluation of the quality of the Agamor oil shale deposits would be conducted by sample collection and laboratory testing. If warranted, an estimate of the size of the reserves would be carried out. (c) Energy Studies. Energy studies would be conducted to provide sectoral analysis for defining future policies, to review the system of supply and pricing of petroleum products and to assess institutional training and technical assistance needs for strengthening planning capabilities. Terms of reference for consultant services include on-the-job training of local counterpart staff and in addition, eight fellowships would be provided for training abroad. Project Risks: No particular risks are associated with the project. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: The total cost of the project net of duties and taxes is estimated at US$4 million equivalent of which US$3.7 million (about 92 percent) would be foreign exchange. A summary cost table is shown below: Foreign Local Total (US$ 000)