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TotalEnergies commits $600M to Congo oil field development

EditorBrando Bricchi
Published 05/23/2024, 12:11 PM
TTEF
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JOHANNESBURG - TotalEnergies (EPA:TTEF), a major player in the oil and gas industry, has announced a significant investment of $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, which is responsible for nearly half of Congo's oil production at approximately 140,000 barrels per day, 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 move comes on the heels of TotalEnergies' recent acquisition of 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.

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.

The African Energy Chamber (AEC) has praised TotalEnergies' dedication to the future of Congo's oil and gas sector. NJ Ayuk, Executive Chairman of the AEC, underscored the role of Congo's hydrocarbon resources in addressing energy poverty and propelling industrialization across Africa.

In a broader context, 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.

Furthermore, the Republic of Congo is 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. This initiative is expected to attract regional and international investment, increase gas utilization, and reduce reliance on crude oil revenue. The plan also anticipates the establishment of a new gas code to enable the commercialization of stranded and flared natural gas, with parliamentary approval anticipated by June.

This information is based on a press release statement from the African Energy Chamber.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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