By Yange Ikyaa
The Congo International Energy Summit and Exhibition 2022, which is being organized by Energy Capital & Power under the patronage of H.E. Denis Sassou Nguesso and Congo’s Ministry of Hydrocarbons, will represent the first international energy event of its kind held in Congo-Brazzaville, beginning from June 15 to 17.
Congo-Brazzaville, which is Sub-Saharan Africa’s third-largest petroleum producer, is seeking to reassert its oil, gas and power industries through an influx of foreign direct investment and heightened regional energy diplomacy.
As global investors turn an eye to green energy investments, the African continent is undertaking an ambitious drive to harness and monetize its vast natural gas reserves, with gas-rich countries like the Republic of the Congo set to become major regional gas players and exporters.
“Energy Capital & Power (ECP) is excited to announce the launch of the first-ever Congo International Energy Summit and Exhibition taking place in the Republic of the Congo on June 15, 16 and 17 2022, which is set to position the country as a key driver of the Central and West African energy narrative,” said the organizers in a statement.
The summit is expected to introduce investors to the post-COVID-19 energy transition landscape of one of Africa’s most mature markets, while opening up broader discussions on the role of regional and international players in facilitating investment and maximizing the participation of African gas players.
It will also showcase partnership and investment opportunities in hydrocarbon exploration, gas monetization, green energy and downstream industries across the continent, with a focus on the Republic of the Congo as a key energy investment destination across oil, gas and power sectors.
Representing Africa’s third largest oil producer, with reserves estimated at 2.9 billion barrels and an output of 336,000 barrels per day (bpd), the Republic of the Congo boasts of the active participation of some of the world’s top oil and gas companies in its hydrocarbon sector.
Notable operators in the country include TotalEnergies E&P, recognized as the largest producer in the country, with an estimated 200,000 bpd output. Commanding participating interests in four offshore fields, including Moho-Bilondo, Nkossa/Nsoko, Sendji, and Yanga, the company is a key contributor to the country’s hydrocarbon success.
In addition, Italian multinational player Eni has been active in the country since 1968 in the exploration, production, refining, marketing and chemicals sectors. The company produces in over ten oilfields, including Nené Marine and Litchendjili with 140,000 bpd, as well as in Ikalou, Awa Paloukou, M’Boundi, and Kouakouala, just to name a few.
Meanwhile, Perenco, one of the newest operators to enter the market, operates the Yombo, Masseko, Likoula, Emeraude and PGNF South fields, producing on average 75,000 bpd. Additional international oil companies driving the Congo’s energy expansion include Chevron Overseas Congo Limited, with operating interests in the Lianzi Unitization Zone and the offshore fields of Nkossa, Nsoko and Moho-Bilondo, producing an average of 49,000 bpd.
The Congolese government has implemented several key reforms aimed at attracting upstream investments and cementing its status as sub-Saharan Africa’s third-largest oil producer. National oil company, SNPC, has been at the forefront of establishing new regulatory frameworks that mitigate organizational and performance inadequacies, particularly investing heavily in infrastructure projects that enhance E&P capabilities.
While leading upstream activities in the Kundji and Tilapia fields, SNPC drilled five appraisal wells in 2021, with a view to increasing output by 30,000 bpd. In the same vein, Italian multinational, Eni, will bring 12 new wells online in 2022 in Phase 2A of its offshore Nené field development, increasing production by 26,000 bpd, while also carrying out exploration activities involving the construction of an additional platform and drilling of seven new wells.
“The Republic of the Congo and the President have championed the energy sector for years and we are honored to work with this country and all stakeholders to drive investments into Congo’s energy sector,” stated Kelly-Ann Mealia, who is the Chairperson ECP in a statement.
He further explained that “this investment and deal-making push comes at a critical time in the country’s energy sector development. The event is the official platform to communicate the direction in which the country and its leading companies are headed, in particular, attracting investment to continue exploration and increased production of hydrocarbons, advance domestic and regional gas monetization, and facilitate a continent-wide energy transition.”
In addition to upstream exploration, the African continent is undertaking an ambitious drive to monetize its vast natural gas resources, meeting domestic supply of gas to power in order to fulfill Africa’s electrification objectives, while meeting global decarbonization demands. Harnessing Africa’s natural gas and meeting the domestic supply of gas-to-power is important to support industrialization throughout the continent. Last November, the Republic of the Congo launched its Integrated Natural Gas Master Plan (GMP) at African Energy Week 2021 in Cape Town, establishing a framework to incentivize and promote the exploitation and development of the country’s 284 billion cubic feet of gas reserves.
Congo has the potential to become a major regional gas player and exporter, obtaining energy independence and security, while exporting to gas-hungry regions like Europe. Moreover, the EU’s latest decision to label designated natural gas projects as ‘green’ marks a critical turning point for African gas development, with gas-rich countries like the Republic of the Congo better positioned to attract project financing, while fostering an African green dialogue.
The Republic of the Congo also serves as a leader in regional energy diplomacy, having joined the Organization of Petroleum Exporting Countries (OPEC) in 2018 and serving as the headquarters of the African Petroleum Producers Organization (APPO). Last September, OPEC Secretary General, Mohammad Barkindo, applauded Congo’s renewed efforts to promote its energy industry during an official visit to Congo-Brazzaville and reaffirmed his endorsement of H.E. Bruno Jean-Richard Itoua, the country’s Minister of Hydrocarbons, as President of OPEC for 2022.
The OPEC delegation helped solidify Congo’s position among established and leading oil-producing partners. In the wake of oil price volatility, OPEC-led coordination and unity among petroleum producers have proven critical, particularly for African producers that depend on crude oil exports for the lion’s share of their GDP and foreign exchange earnings.
