TotalEnergies, the French oil major, is set to invest $600 million in the Republic of Congo in 2024 to bolster exploration and production activities. This move marks the second time in recent months that the company has overlooked Nigeria’s oil and gas sector.
Patrick Pouyanne, CEO of TotalEnergies, announced last week in Kenya that the company decided to allocate $6 billion to Angola instead of Nigeria, due to policy inconsistencies and other challenges in the West African nation.
Following this decision, TotalEnergies has confirmed a substantial $600 million investment in Congo to support oil exploration and production, bypassing Africa’s largest oil producer once again.
Investment in Moho Nord Field
The $600 million investment will finance exploration and sustain production in the deep offshore Moho Nord field, which contributes roughly 140,000 barrels per day (bpd), accounting for about half of Congo’s oil production.
“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 company stated.
Two drilling rigs have arrived at the Moho Nord field, and CEO Patrick Pouyanné expressed optimism that the field will yield a significant discovery before the year ends.
Strategic Partnerships and Future Prospects
NJ Ayuk, executive chairman of the African Energy Chamber (AEC), highlighted the importance of TotalEnergies’ investment: “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. We look forward to witnessing new discoveries in the coming months.”
In addition to TotalEnergies’ investment, the Republic of Congo is set to benefit from a new strategic partnership with Algeria in the field of hydrocarbons and energy. A memorandum of understanding was signed on May 21 between Algeria’s Minister of Energy and Mines, Mohamed Arkab, and Congo’s Minister of Hydrocarbons, Bruno Jean-Richard Itoua, to develop a new roadmap for bilateral relations.
This agreement aims to facilitate expertise sharing between Algeria’s state-owned Sonatrach and the SNPC, headed by Raoul Ominga, particularly in the downstream oil sector. Both countries have also expressed support for the development of an African Energy Bank, which will focus on investment in oil and gas projects across the continent.
Conclusion
TotalEnergies’ strategic investments and partnerships signify a robust commitment to developing Africa’s energy sector. While Nigeria remains a significant player, policy challenges have led the company to explore opportunities in other African nations, thereby potentially reshaping the continent’s energy landscape.
