French energy giant TotalEnergies has decided to invest $600 million in 2024 to enhance its exploration and production efforts in the Republic of Congo, turning away the Nigerian oil and gas industry for the second time in as many years.
Recall that The News Chronicles reported that the CEO of TotalEnergies, Patrick Pouyanne, said last week in Kenya that the business decided to invest $6 billion in Angola rather than Nigeria because of the latter’s inconsistent policies and other problems.
After this, the business declared that it would be investing $600 million in oil production and exploration in Congo—again ignoring Nigeria, which is the continent’s biggest oil producer.
The investment would fund exploration and sustain production in the nation’s deep offshore Moho Nord field, per the press release obtained by TNC.
“The $600 million investment will open up a wave of economic opportunities for the broader region and signals a strong intent by the IOC to develop and monetize Congolese hydrocarbons for the benefit of the country,” the statement read.
“TotalEnergies CEO Patrick Pouyanné expressed his optimism that the field will yield a discovery before the end of the year,” as two drilling rigs arrived at the permit this month.
The announcement states that the investment will be used to support exploration and uphold production in the deep offshore Moho Nord field of the nation, which produces about 140,000 barrels per day (bpd), or almost half of all oil produced in the Democratic Republic of the Congo.
“TotalEnergies’ $600 million investment demonstrates that the IOC intends to remain in the Republic of Congo. Oil and gas from the Congo can significantly contribute to reducing energy poverty and promoting industrialization throughout Africa; collaborations with businesses such as TotalEnergies will be essential to realizing these goals. In the upcoming months, we hope to see further findings made,” said NJ Ayuk, the AEC’s executive chairman.
In addition to the investment plan of TotalEnergies, the Republic of Congo is expected to gain from a new strategic alliance in the energy and hydrocarbons sectors with Algeria.
Before this, on May 21, the Ministers of Mines and Energy of Algeria, Mohamed Arkab, and Hydrocarbons, Bruno Jean-Richard Itoua, of the Republic of Congo, signed a memorandum of agreement to facilitate the creation of a new bilateral relations roadmap.
Additionally, the arrangement will make it easier for Algeria’s state-owned Sonatrach and the Raoul Ominga-led SNPC to share experience in the downstream oil sector.
Additionally, the two nations have conveyed their hope and support for the creation of an African Energy Bank, which will concentrate funding on gas and oil projects throughout the continent.
