June 13, 2024
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OIL & GAS

TotalEnergies to Invest $600M to Congo Oil Field Development

One of the major players in the oil and gas industry, TotalEnergies, has announced a significant commitment of investing $600 million aimed at bolstering exploration and production (E&P) in the Republic of Congo. This financial commitment is directed towards the deep offshore Moho Nord field, a major source of the nation’s oil output.

The Moho Nord field, is responsible for nearly half of Congo’s oil production at approximately 140,000 barrels per day. It will be the primary beneficiary of this investment. TotalEnergies’ involvement in the Moho Nord field spans four reservoirs covering an area of 320 square kilometers, with water depths ranging from 750 to 1,200 meters. The investment is expected to boost the field’s production by an additional 40,000 barrels per day.

This development comes in handy, as TotalEnergies’ recently acquired a 10% stake in the Moho permit from Trident Energy, increasing its operational share to 63.5%. The Republic of Congo’s national oil company, Société Nationale des Pétroles du Congo (SNPC), and Trident Energy hold 15% and 21.5% shares respectively.

“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 to the likes of TotalEnergies will be instrumental in achieving these objectives. We look forward to witnessing new discoveries being made in the coming months,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber ( AEC).

Patrick Pouyanné, CEO of TotalEnergies, has expressed optimism about the potential of the Marine XX permit, where two drilling rigs arrived earlier this month. There is anticipation for a significant discovery before year-end.

In the mean time, the Republic of Congo is also forging a strategic partnership with Algeria to enhance hydrocarbon and energy collaboration. A memorandum of understanding was signed between the two nations on May 21, which includes a roadmap for bilateral relations and the sharing of expertise in the downstream oil sector.

The country is also finalizing a new Gas Master Plan, with the support of Wood Mackenzie, which aims to foster the development of the national gas sector for both domestic use and export.

 

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