The Republic of Congo led by Minister of Hydrocarbons, Bruno Jean-Richard Itoua, recently signed an amended Production Sharing Contract (PSC) with China’s Wing Wah Oil Company for the Banga Kayo block. This amended PSC signifies the commencement of development activities within the block, demonstrating the nation’s commitment to optimizing its untapped hydrocarbon resources.
The African Energy Chamber (AEC), representing the African energy sector, endorses the country’s initiative to expedite the development of this strategic asset in collaboration with its global partner. This project’s development is pivotal for the Republic of Congo to realize its objective of doubling hydrocarbon production to 500,000 barrels per day (bpd).
To double production capacity, the Republic of Congo is poised to create new avenues for sustainable economic growth through investment in the oil and gas sector. The amended PSC outlines a phased development plan, with production slated to commence in August 2024, followed by resource commercialization starting in February 2025, and marketing and distribution initiatives commencing in December 2025. This development is anticipated to bolster the country’s national production capacity, thereby increasing export revenues and stimulating economic development.
The structured development plan delineates a clear strategy for resource monetization and underscores the significance of public-private partnerships in oil and gas project development in Africa. The Republic of Congo has already experienced favorable outcomes through collaboration with private entities and global exploration and production (E&P) firms, evidenced by a robust pipeline of projects across the exploration and production landscape. Led by energy major Eni, the country anticipates its first shipment from its inaugural natural gas liquefaction project, involving the deployment of two FLNG vessels at the Marine XII concession.
Additionally, companies such as independent explorer Perenco, which discovered the PNGF Sud license in 2022, and energy major TotalEnergies, slated to drill the Niamou-1 well on the Marine XX block, are spearheading exploration endeavors. The country’s national oil company, SNPC, is projected to increase its production capacity by 10,000 bpd this year, underscoring its commitment to production growth and the abundant opportunities within the market.
NJ Ayuk, Executive Chairman of the AEC, remarked, “Spearheaded by its Ministry of Hydrocarbons, the Republic of Congo is making significant progress in developing its oil and gas resources, with its expedited approach serving as a model for other resource-rich nations in Africa. With ambitious goals to double production capacity, the country is poised to unlock new opportunities for sustainable economic growth through oil and gas investment.”
