French oil TotalEnergies Commits $600 Million to Enhance Congo Operations, Opts Against Nigerian Oil Sector Yet Again.
Patrick Pouyanne, TotalEnergies’ CEO, stated last week in Kenya that the company chose to invest $6 billion in Angola over Nigeria due to policy inconsistencies and other issues in the West African country.
Following this development, the company announced a $600 million investment in the Congo for oil production and exploration, once again overlooking Nigeria, Africa’s largest oil producer.
According to the press statement seen by BusinessDay, the investment will be used to finance exploration and maintain production in the country’s deep offshore Moho Nord fi
“The $600 million investment signals a strong intent by the IOC to develop and monetize Congolese hydrocarbons for the benefit of the country and will unlock a wave of economic opportunities for the broader region,” the statement showed.
“Two drilling rigs arrived at the permit this month, with TotalEnergies CEO Patrick Pouyanné expressing his optimism that the field will yield a discovery before the end of the year.”
According to the statement, the investment will be used to finance exploration and maintain production in the country’s deep offshore Moho Nord field, which accounts for approximately half of all Congolese oil production, or roughly 140,000 barrels per day (bpd).
“The $600 million investment by TotalEnergies shows that the IOC is in the Republic of Congo to stay. Congo’s oil and gas can play a much greater role in alleviating energy poverty and driving industrialization in Africa, and partnerships with companies like TotalEnergies will be instrumental in achieving these objectives.
In addition to TotalEnergies’ investment plan, the Republic of Congo is set to benefit from a new strategic partnership with Algeria in the field of hydrocarbons and energy.
Earlier, a memorandum of understanding was signed between Algeria’s Minister of Energy and Mines Mohamed Arkab and the Republic of Congo’s Minister of Hydrocarbons Bruno Jean-Richard Itoua on May 21 to enable the development of a new roadmap for bilateral relations between the two countries.
The agreement will also enable Algeria’s state-owned Sonatrach and SNPC, led by Raoul Ominga, to exchange expertise in downstream oil. Both nations have also voiced optimism and backing for establishing an African Energy Bank to concentrate investment in oil and gas projects throughout the continent.
