By Ejekwu Chidiebere
The Republic of the Congo and Chinese oil and gas company Wing Wah announced that they have signed a $23 billion hydrocarbon agreement for the integrated development of the Banga Kayo, Holmoni and Cayo permits. This deal Energy Window International (Media) has gathered, sets the stage for a transformative boost to the nation’s oil production as the country targets output of 200,000 barrels per day (bpd) by 2030.
The agreement according to African Energy Chamber was officially signed in August by Bruno Jean-Richard Itoua, Minister of Hydrocarbons of Congo, Jean-Jacques Bouya, Minister of State of Congo and Xiao Lianping, President General, Wing Wah.
Energy Window International (Media) has also learnt that through the pact, Congo would be looking forward to ramping up cumulative production across the three permits to more than 1.3 billion barrels by 2050. “The deal is a central pillar in the country’s broader economic and financial strategy, committing over $23 billion in investment and promising substantial fiscal and para-fiscal revenues,” AEC reported.
The AEC says it’s highly excited with the signing of this agreement because it will extend beyond crude extraction, according to this Africa’s energy industry watchdog. “The agreement advances energy sovereignty through the valorization of associated gas for domestic use which is critical to reducing routine flaring.” It added that the cornerstone of the project was the creation of a training center, aimed at boosting local content by equipping Congolese citizens at all skill levels to access new job opportunities generated by the development.
The project according to the Chamber also includes an integrated gas monetization component, with multi-phase expansion of LNG, LPG, and butane and propane production capacity–intended to satisfy both domestic demand and exports. Adding that the integrated nature of the development will not exclude scalable gas treatment infrastructure, on-site power generation and water-management systems – al designed for efficiency and community benefit.
“Local employment is already substantial, with some 3,000–3,300 Congolese workers involved, and social benefits such as excess power and treated water provided to nearby communities.”
Energy Window International (Media) gathered that Wing Wah has already established a significant presence in Congo via its development of the Banga Kayo field, an onshore permit which comprised around 237–250 drilled wells and produces approximately 45,000 bpd, approaching a peak output of 50,000–80,000 bpd.
“The signing of an amended Production Sharing Contract (PSC) between Minister of Hydrocarbons Bruno Jean-Richard Itoua and China’s Wing Wah Oil Company for the Banga Kayo block last year was a significant step towards maximizing hydrocarbon resources in the country. The move also marked the beginning of development at the block, and underscores the country’s commitment to tapping into its untapped resources,” AEC said.
The amended PSC Energy Window International (Media) also gathered has outlined a three-phase development plan to demonstrate, AEC says, the importance of public-private partnerships in developing oil and gas projects while providing a clear path to resource monetization in Africa.
“The Republic of the Congo is aggressively developing its oil and gas resources, led by its Ministry of Hydrocarbons. The country’s rapid approach to resource development serves as a model for other African nations rich in natural resources. With ambitious plans to increase production capacity, Congo is set to unlock new opportunities for sustainable economic growth through strategic oil and gas investments,” AEC Chairman said.