Congo’s Energy Growth: Service Providers Key to Unlocking Hydrocarbon Potential

By Africa.com | Created at 2025-01-16 16:26:31 | Updated at 2025-01-16 22:07:34 6 hours ago
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Energy Capital & Power

Energy Capital & Power

With ambitions to boost oil production from 270,000 to 500,000 barrels per day in the next few years, service providers are instrumental in shaping the growth of the Republic of Congo’s exploration and production sector. Alongside this, the country’s focus on gas sector development – supported by its upcoming Gas Master Plan and new Gas Code and designed to unlock 10 trillion cubic feet of natural gas – opens additional avenues for service companies, particularly in gas field development, infrastructure and associated services.

Energy Service Contracts Driving Growth

As the Congo’s energy sector expands, service contracts are a driving force behind the development of key energy projects. A prime example is the recent contract awarded to Turkish power company Aksa Enerji, which aims to increase production at the Djeno gas-to-power plant to 100 MW. The upgrade involves adding two 25 MW turbines, along with rehabilitating the existing turbines. This development underscores the pivotal role of service companies in upgrading infrastructure to meet the growing energy demands of the Republic of Congo.

In parallel, towage and maritime services are essential to offshore gas projects. Last August, Kotug International, a towage and maritime company, secured a contract from energy major Eni to provide marine services for the Congo LNG project. The scope of the contract includes deploying three rotortugs for vessel mooring and unmooring operations, standby services and pilot transport. The agreement also highlights Kotug’s commitment to supporting local content development and sustainability by collaborating with local suppliers and utilizing local resources.

Partnerships and Agreements Fueling Development

Strategic service partnerships also play a key role in the country’s energy growth. TotalEnergies and Vantage Drilling recently formed a joint venture to operate the Tungsten Explorer drillship offshore Congo for the next decade. The partnership emphasizes how service contractors support the development of critical energy infrastructure and offshore operations. Additionally, China’s Wison Heavy Industry has entered into an agreement with Baker Hughes to collaborate on FLNG and onshore LNG applications in the Congo. This deal illustrates how service companies are helping streamline operations and standardize technical solutions in the Congo’s growing natural gas sector.

Downstream Services Driving Domestic Development

While the Congo is rich in oil resources, the country’s refining capacity is currently insufficient to meet domestic demand, creating a valuable opportunity for service companies to engage in downstream infrastructure development. The upcoming $600 million Atlantic Petrochemical Refinery, being developed by Beijing Fortune Dingheng Investment, will provide a range of refined petroleum products to meet domestic needs. Service companies will play an essential role in the construction, operation and maintenance of the refinery, contributing to the country’s self-sufficiency in refined products.

Additionally, the Banga Kayo onshore project by Wing Wah will see the drilling of approximately 250 wells with a peak output of 80,000 bpd. This initiative highlights the importance of service companies in both upstream development and refining operations, as the project is expected to process gas into LNG, LPG and other byproducts.

Role of Service Providers in the Congo’s Energy Transformation

With significant investment in both upstream and downstream energy infrastructure, service companies are at the heart of the Republic of Congo’s energy transformation. As the country strives to meet its energy goals, the importance of service contracts – ranging from power plant upgrades to marine and drilling services – cannot be overstated. These partnerships are crucial to unlocking the full potential of the Congo’s oil, gas and energy sector, and will continue to drive the country’s economic and energy growth.

The inaugural Congo Economic&Investment Forum, set for March 25-26, 2025 in Brazzaville, brings together international investors and local stakeholders to explore national and regional energy and infrastructure opportunities. The event will explore the latest gas-to-power projects and provide updates on ongoing expansions across the country.

Distributed by APO Group on behalf of Energy Capital&Power.

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