Benin+PNGSM

=Chinese Companies Are Unlikely To Make Investments Into PNGSM Industries Of Benin Due To A Lack Of Exploitable Resources=

Executive Summary:
Chinese companies are unlikely to make any significant investments into Benin's PNGSM industries in the next five years. In 2013, oil reserves were discovered by South Atlantic Petroleum (SAPETRO) in Block 1 of the Seme oilfield, including both inland and offshore reserves. These reserves are estimated to contain close to 200 million barrels of oil (87 million onshore and 110 million offshore). SAPETRO owns a 100 percent stake in the block containing these reserves. Despite SAPETRO partnering with CNOOC in a past venture in Nigeria, they are unlikely to do so in this case because of SAPETRO's 100 percent stake in the oil reserves. However, if Benin discovers other large reserves, it is likely that Chinese companies will pursue exploratory licenses for petroleum and natural gas. Benin's mining industry is currently only a small part of their economy producing mostly industrial minerals, such as limestone or marble. Gold is also produced in small quantities, mainly by artisanal miners.

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal