Country: Congo Brazzaville

Congo’s national oil company SNPC is hosting this week in Brazzaville the 5th Meeting of the CEOs of national oil companies (NOCs) of the African Petroleum Producers Organisation (APPO). The summit confirmed the growing commitment of African energy companies to work together and address Africa’s persistent energy crisis. “African NOCs are finding themselves at a crossroad with the dual responsibility of ensuring energy security for their respective markets while finding new sustainable models to develop their natural resources and fossil fuels,” said Rachid Hachichi, CEO of Algeria’s SONATRACH. “SONATRACH is determined to work with African state-owned oil companies to boost our industries and meet common development challenges,” he added. Echoing his comments, SNPC Director General Raoul Maixent Ominga called for a strong South-South energy cooperation between African NOCs to unlock investments into oil & gas, which remain the main engine of several economies on the continent. As the Republic of Congo and SNPC host the summit, Minister of Hydrocarbons Bruno Jean-Richard Itoua called for the establishment of a permanent secretariat of the NOCs forum to structure partnerships and cooperation around key APPO initiatives such as the creation of an African Energy Bank. To grow cooperation between companies, several MoUs were signed this morning between SONATRACH and Société Nationale des Hydrocarbures du Bénin  (SNH Benin), SNPC, Société Nationale Pétrolière de la République Démocratique du Congo (SONAHYDROC SA) and Ghana National Petroleum Corporation (GNPC), and between Société nigérienne de Pétrole (SONIDEP) and SNPC. The MoUs cover several key areas of cooperation, including onshore exploration & production, training and human capital development, and the sharing of best industry and operational practices.

On September 27th, Afreximbank signed an agreement to provide a $300m facility to Trident OGX Congo for the development of the onshore Mengo-Kundji-Bindi II (MKB II) oil fields in the Republic of Congo. The reserve-based lending (RBL) facility will support the company’s capex programme to increase the country’s oil production by 30%, according to Afreximbank. Between 2018 and 2021, state-owned SNPC carried out studies to reassess the potential of its MKB II permit, where it also drilled five appraisal wells and constructed a road and platforms. “These positive results make it possible to envisage a production of over 40,000 barrels per day (bpd) at the end of the development drilling campaign in 2024,” SNPC Director General Maixent Raoul Ominga said in an interview shared with Hawilti earlier this year. In December 2021, the MKB II permit was transferred to Trident OGX Congo for 20 years to unlock additional capital and technology for its development.

Congo’s national oil company SNPC organized a gala dinner to celebrate its 25th anniversary and launch its ambitious “Performance 2025” program. The event took place at the Grand Hotel of Kintélé in early May and brought together more than 1,000 people, including SNPC agents, partners, friends and members of the government and Congolese institutions. The highlight of the evening was the launch of the “Performance 2025” program of the SNPC. Presented by the Director General of the company, Mr. Maixent Raoul Ominga, this project is based on four pillars: increasing income, controlling and optimizing costs, supporting and contributing to the government agenda, and ensuring better governance of the company’s activities. More generally, Performance 2025 aims at positioning the SNPC as a undisputed leader of the Congolese and African oil industry in the years to come. The Director General clarified that the project seeks to improve the competitiveness of SNPC, emphasizing productivity, quality and operational efficiency. A highlight of the evening was the delivery of the SNPC book to the Director General by a tribe who presented a choreography and traditional songs. The SNPC book presents the history of hydrocarbons in the Republic of Congo since 1957 and that of the company 25 years ago. It was presented by the Director General to Mr. Bruno Jean Richard Itoua, Minister of Hydrocarbons. “For the SNPC, this historic moment is an opportunity to take a retrospective look on the road traveled and to have a prospective look at its future,” Maixent Raoul Ominga said during his speech. “It is by associating all the intelligences, energies, know-how and by getting out of our comfort zones that our company will certainly be at the rendez-vous of its ambitions, through its ‘Performance 2025’ program.”

Expro has announced this week the signing of a 10-year Production Solutions contract with Eni Congo for an 80 MMscf/d LNG pre-treatment facility in Congo-Brazzaville. Under the agreement, Expro will design, construct, operate and maintain a fast-track the facility as part of Eni Congo’s Marine XII gas development plans that include the deployment of two floating LNG units in 2023 and 2025. Expro’s facility will be built near the Litchendjili gas plant to enable LNG production, under a 10-year contract that should generate some $300m for Expro. “The facility will link to Eni Congo’s offshore floating LNG (FLNG) operations, supporting both the local energy market and increased global demands for LNG to support secure energy supplies,” Expro said in a statement.

Wison Offshore & Marine held yesterday its 1st Cutting Ceremony for a new floating LNG unit it is constructing for Eni in the Republic of Congo. The ceremony took place at the Nantong yard, where Wison (Nantong) Heavy Industry Co., Ltd. will be constructing the 2.4 mtpa unit. The project is expected to be commissioned in 2025 on Eni’s shallow water Marine XII Block offshore Congo-Brazzaville. It is part of Eni’s phased gas valorisation plan to develop and monetise the gas reserves on the license. Phase 1 relies on the 0.6 mtpa Tango FLNG which Eni acquired from Exmar in 2022 and where first production is expected in H2 2023 to monetise available gas from the Litchendjili et Néné-Banga fields. Once both projects are commissioned, the block will have an LNG export capacity of 3 mtpa, or 4.5 Bcm/year.

The oil & gas sector knows no break and has had its fair share of developments over the past two weeks. Here is what you need to know as you get back to the office. Mozambique has announced the results of its 6th Licensing Round On December 21st, Mozambique revealed the results of its 6th Licensing Round, which resulted in the award of only six blocks out of the 16 license areas that were proposed. The China National Offshore Oil Corporation (CNOOC) secured five blocks over the Save and Angoche Basins and Eni Mozambique securing one license in the Angoche Basin. None of the areas within the Zambeze Basin were awarded. “The Exploration programs proposed for the first sub-period of the Exploration Period have the potential to allow investments amounting to approximately $369.8m, foreseeing the acquisition of 31,200 Km2 of 3D seismic, opening of a minimum of four wells in deep water, and other geoscientific studies,” the National Institute of Petroleum (INP) said in a statement. Nigeria has launched a Mini Bid Round for deep-water blocks On December 21st, Nigeria announced its Mini Bid Round 2022 and put seven deep-water blocks on offer covering some 6,700 km2. A pre-bid conference is scheduled for January 16th while pre-qualification applications mut be submitted by January 31st. Under the new PIA regime, the blocks on offer are PPL-300-DO (former OPL 312); PPL-301-DO (former OPL 313); PPL-302-DO (former OPL 314); PPL-303-DO, PPL-304-DO, and PPL-305-DO (the three used to form IPL 318); and PPL-306-DO (former OPL 327). This Mini Bid Round will be a test for Nigeria’s attractiveness and competitiveness after a full overhaul of its oil & gas regulatory regime with the adoption of the PIA in 2021. Eni has selected a provider for its second FLNG unit in Congo-Brazzaville On December 22nd, Eni announced the signing of a contract with Wison Heavy Industry of China for the construction and installation of a 2.4 mtpa floating LNG unit in the Republic of Congo, offshore Pointe Noire. The unit will be the second FLNG facility of Eni in Congo since the company expects to commission this year the 0.6 mtpa Tango FLNG vessel it acquired from Exmar a few months ago. Both units will be monetizing associated gas from the Marine XII permit. Total Gabon expanded its upstream portfolio in Central Africa On December 26th, TotalEnergies EP Gabon extended its presence in Gabon with the signing of a new Exploitation & Production Sharing Contract (EPSC) over the Baudroie-Merou-Marine G5-143 permit. The 25-year agreement will run until 2047. “We remain fully committed as an energy producer in Gabon. We will maintain our investments to reduce greenhouse gas emissions by valorising associated gas and will continue to implement actions to maintain our production,” said Henri-Max Ndong-Nzue, President of TotalEnergies EP Gabon.  Invictus Energy has finished drilling its first wildcat onshore Zimbabwe On January 3rd, Invictus Energy confirmed that technical and operational issues prevented a discovery at its Mukuyu-1 wildcat well onshore Zimbabwe. However, multiple potential gas bearing reservoir units were encountered and the well did prove the existence of a working hydrocarbons system. The Rig 202 is currently warm stacked on site for maintenance and upgrades and will recommence drilling operations later this year. Invictus Energy is considering an appraisal well (Mukuyu-2) or the drilling of Baobab-1. As a result, the contract with EXALO Drilling for the rig has been extended by another 12 months.

Perenco has confirmed a new oil discovery within the Tchibeli North East pre-salt Vandji exploration prospect on its PNGF Sud shallow water permit in Congo-Brazzaville. “Good oil and gas shows were recorded on entry into the reservoir and a 75m oil column was interpreted on logs. A test of these zones produced at 2,000 bopd, followed by other analysis necessary to help confirm volumes,” the operator said. The company believes the new discovery could be a play opener in the pre-salt Congo, and holds a number of additional Vandji leads it could drill on the block. The block was a large shallow water permit initially awarded to Elf (now TotalEnergies) in the 1960s, which started producing in 1987. It was taken over by a partnership led by independent Perenco in January 2017 along with Hemla E&P Congo Continent Congo, Africa Oil & Gas Corporation and Petro Congo. PNGF Sud remains a mature oil asset holding significant remaining potential, with significant infrastructure in place. Nine steel jackets are currently installed and act as drilling or processing centers, supporting 67 producing wells across five fields in 2022: Tchibouela, Tchendo, Tchibeli, Litanzi and Tchibouela East. The partnership is currently executing several brownfield projects on the block to boost production, with up to six wells scheduled for 2023. Full details on the development of PNGF Sud are available in the “Projects” section within your Hawilti+ research terminal.

New Fortress Energy has executed a a Heads of Agreement (HoA) with Eni Congo for the deployment of its Fast LNG liquefaction technology off the coast of the Republic of the Congo for a period of 20 years. Under the agreement, NFE will deploy its innovative “Fast LNG” facility to produce up to 1.4 million metric tons per year of LNG from the associated gas fields of Nene Marine on Block Marine XII. The development of a floating LNG project has been on the table for several years in Congo and is finally gaining traction. A few weeks ago, Eni announced it was seeking to develop the project in two phases with two modular and flexible liquefaction plants. Phase 1 is expected to rely on a near-shore concept while Phase 2 would rely on an offshore concept.  The production from Phase 1 is expected to start in Q2 of 2023. The project would both target zero gas flaring but also seek to valorise gas for the domestic power and industrial sectors and for the export market. Last December, NFE had also executed a non-binding Memorandum of Understanding (MoU) with the Islamic Republic of Mauritania for the development of the offshore Banda gas reserves into a new energy hub. Under the MoU signed with the Ministry of Petroleum, Mines and Energy, New Fortress Energy would also deploy its Fast LNG liquefaction technology to produce LNG for Mauritania’s domestic gas and power markets and for exports.