TotalEnergies to Invest $600 Million in Congo's Oil and Gas Sector in 2024

The African Energy Chamber (AEC) lauds this commitment, recognizing its potential to drive economic opportunities and foster development in the broader region.

TotalEnergies has announced a substantial $600 million investment to bolster exploration and production activities in the Republic of Congo in 2024. This funding will be directed towards the exploration and maintenance of the deep offshore Moho Nord field, which produces approximately 140,000 barrels per day (bpd) and constitutes nearly half of the nation's oil output. The African Energy Chamber (AEC) lauds this commitment, recognizing its potential to drive economic opportunities and foster development in the broader region.

Key Aspects of TotalEnergies' Investment

Enhancing Moho Nord Field Production:

The Moho Nord field encompasses four reservoirs over 320 km², with water depths ranging from 750m to 1,200m.

TotalEnergies’ investment is anticipated to increase production by 40,000 bpd, augmenting the country's current production of 267,000 bpd.

Exploration in Marine XX Permit:

TotalEnergies is also active in the deep offshore Marine XX permit, covering 3,285.8 km² at water depths of up to 2,000m.

Two drilling rigs recently arrived at this site, and CEO Patrick Pouyanné expressed optimism about potential discoveries by the end of the year.

Strategic Partnerships and Acquisitions:

In April, TotalEnergies acquired a 10% stake in the Moho permit from Trident Energy, resulting in a 63.5% operational stake for TotalEnergies, with Trident Energy retaining 21.5% and the Congolese national oil company SNPC holding 15%.

A new memorandum of understanding was signed between Algeria’s Minister of Energy and Mines and Congo’s Minister of Hydrocarbons to develop a roadmap for bilateral relations in the field of hydrocarbons and energy.

Broader Implications and Strategic Developments

Economic and Energy Impact:

NJ Ayuk, Executive Chairman of the AEC, highlighted the role of such investments in alleviating energy poverty and driving industrialization in Africa.

The collaboration between TotalEnergies and local entities is expected to unlock significant economic opportunities and support long-term growth.

Development of Gas Sector:

The Republic of Congo's Ministry of Hydrocarbons has confirmed the formation of a new Gas Master Plan, revealed during the Invest in African Energy 2024 summit in Paris.

This plan, supported by SNPC and Wood Mackenzie, aims to incentivize the development of the national gas sector, promoting gas utilization and reducing reliance on crude oil revenue.

Legislative and Policy Changes:

The plan includes negotiating existing contracts and establishing a new gas code to commercialize stranded assets and flared natural gas.

Minister Itoua expects parliamentary approval of the new gas code by June, which will enhance fiscal terms and support the viability of small-scale projects.

TotalEnergies’ $600 million investment is a significant step towards strengthening the Republic of Congo’s oil and gas sector. This initiative, coupled with strategic partnerships and legislative advancements, is set to drive economic growth, ensure energy security, and enhance the country’s position in the global energy landscape. By leveraging advanced exploration techniques and fostering collaborative efforts, TotalEnergies and its partners are poised to make substantial contributions to the region’s development and stability.