French oil giant TotalEnergies plans to invest $600 million to enhance exploration and production in the Republic of Congo in 2024, bypassing Nigeria for the second time in a short span.
Patrick Pouyanne, CEO of TotalEnergies, recently revealed in Kenya that the company chose to allocate $6 billion to Angola instead of Nigeria due to policy inconsistencies and other challenges in the West African nation. Following this, TotalEnergies announced a significant $600 million investment in Congo for oil production and exploration, once again overlooking Nigeria, Africa’s largest oil producer.
The investment, as outlined in a statement obtained by BusinessDay, will finance exploration and maintain production in Congo’s deep offshore Moho Nord field. This field accounts for about half of Congo’s oil production, roughly 140,000 barrels per day (bpd).
“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 said.
Two drilling rigs arrived at the permit this month, with Pouyanne expressing optimism about potential discoveries by year-end.
NJ Ayuk, executive chairman of the AEC, remarked, “TotalEnergies’ investment shows that the IOC is committed to the Republic of Congo. Congo’s oil and gas can play a significant role in alleviating energy poverty and driving industrialization in Africa. Partnerships with companies like TotalEnergies will be crucial in achieving these goals.”
In addition to TotalEnergies’ investment, the Republic of Congo is poised to benefit from a new strategic partnership with Algeria in hydrocarbons and energy. A memorandum of understanding was signed on May 21 by Algeria’s Minister of Energy and Mines, Mohamed Arkab, and Congo’s Minister of Hydrocarbons, Bruno Jean-Richard Itoua, aiming to enhance bilateral relations and expertise sharing between Algeria’s state-owned Sonatrach and Congo’s SNPC. Both countries support the development of an African Energy Bank to invest in oil and gas projects across the continent.
