One such development is the recent launch of the Tchendo 2 mobile offshore production unit by independent oil and gas company Perenco, using up to 10 million standard cubic feet of gas to generate 27 MW of electricity. This project - serving the Likouala, Emeraude and PNGF fields - represents just one of many underway as RoC accelerates development across the oil and gas value chain.

Recent M&A Activity to Drive Production Growth

Recent upstream investments in the RoC underscore the commitment by project developers to maximize output across the country. In May 2024, oil major TotalEnergies announced a $600 million investment to revitalize exploration and production in the Moho Nord deep offshore field by the end of 2024, aiming to increase its output by 40,000 bpd. The company also plans to drill the Niamou-1 exploration well on the Marine XX offshore block in 2024. 

Additionally, the country has drawn independent producers like Trident Energy, which entered the Congolese market in April 2024 by acquiring oil major Chevron’s assets. This includes interests in the Moho-Bilondo, Nkossa, Nsoko II and Lianzi fields. Perenco has also outlined ambitious future development plans, including the drilling of six new wells, which will add 10 million barrels of reserves to its existing fields. This comes after the company’s shallow water discovery at its PNGF Sud license in April 2024 and the completion of a 3D seismic acquisition campaign across key permits.

Integrated Infrastructure Projects Advance

Recent discoveries in RoC's energy sector have been accompanied by significant advancements in major energy projects, particularly those focused on infrastructure development and capacity expansion. Growing global demand and escalating energy prices have driven the push for fully integrated projects like oil major Eni's Marine XII LNG, which successfully exported its first LNG cargo in February 2024. Set to produce 3 million tons of LNG per year by 2025, the project includes the installation of two FLNG units at the Nenè and Litchendjili fields. The second vessel will come online in 2025, adding a capacity of 2.4 million tons per year. 

Simultaneously, Chinese company Wing Wah is spearheading the multi-phase Banga Kayo onshore project, which aims to produce 30 billion cubic meters of associated gas over 25 years. This project will transform flared gas into dry gas, LNG, LPG and polypropylene, with the first phase of production set to begin in 2024. As the project progresses, subsequent phases will focus on commercialization, marketing and distribution - both locally and regionally.

Upcoming Policy to Drive Future Investments

In response to recent developments, the Congolese government has adapted its hydrocarbon strategy to capitalize on the country's 10 trillion cubic feet of proven natural gas resources. The focus has shifted towards increasing production, monetizing flared gas and developing advanced processing facilities. To maximize its untapped gas potential, the Ministry of Hydrocarbons plans to establish a national gas company in 2024 and is crafting a new Gas Master Plan. This plan will serve as a roadmap for harnessing RoC’s gas resources for both domestic consumption and export, aiming to boost gas utilization and diversify crude oil revenues. 

Navigating Challenges and Seizing Opportunities

Despite these developments, the energy sector in the RoC faces several challenges that need to be addressed to ensure its long-term success. Regulatory challenges, such as complex permitting processes and project approval delays, have created uncertainties for investors and slowed development. In response, the government launched several consultations with the oil and gas stakeholders in May 2024 to streamline licensing procedures and expedite investments.

The country’s infrastructure gaps, particularly in transportation and electrical distribution, pose significant challenges by limiting the efficient movement of oil and gas resources from production sites to markets. However, integrated projects by companies like Eni, Perenco and Wing Wah could enhance power access in the RoC over the medium- to long-term and generate additional revenue to improve critical logistical infrastructure. This approach is similar to the 2022 upgrade of Central Africa’s only deepwater port, the Port of Pointe-Noire, which now meets the International Ship and Port Facility Security Code.

The RoC’s transformation into a regional energy hub through integrated projects will be a key topic during the inaugural Congo Energy & Investment Forum 2025 - scheduled for March 25-26 in Brazzaville. The forum will provide an opportunity for local stakeholders to forge stronger connections with international partners and advance energy security and sustainability in Central Africa.