Republic of the Congo's petroleum reserves
The Republic of the Congo, located in West Africa along the Atlantic Ocean, is known for its significant petroleum reserves, making it the fifth-largest oil producer in sub-Saharan Africa. Following a tumultuous civil war from 1997 to 2003, the country struggled to develop its hydrocarbon sector, which remains the cornerstone of its economy, contributing nearly two-thirds of its gross domestic product. As of 2023, the Republic of the Congo boasts proven oil reserves estimated at 180 million barrels, with production levels rising to 273,000 barrels per day after a previous decline. The Moho-Bilondo offshore field, operational since 2008, plays a crucial role in the country's oil production, utilizing advanced technology to extract significant quantities of oil.
The government partners with international companies like Total, Eni, and Perenco through production-sharing agreements to ensure a steady revenue stream. The country has also begun exporting liquefied natural gas (LNG), marking a new chapter in its energy sector as it looks to diversify its energy resources. With an expected increase in LNG production capacity in the coming years, the Republic of the Congo is positioning itself as a key player in the global energy market.
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Republic of the Congo's petroleum reserves
Official Name: Republic of the Congo; also known as Brazzaville.
Summary: The large petroleum reserves of the Republic of the Congo were underexploited because resources were drained by a prolonged civil war at the end of the 1990s. The Republic of the Congo has managed to become sub-Saharan Africa’s fifth-largest oil producer.
Formerly known as Middle Congo, the Republic of the Congo (or Congo-Brazzaville), is located in West Africa in the sub-Saharan region along the Atlantic Ocean. From 1997 to 2003, the country was shaken by political unrest and civil war, which followed the return to power of the Marxist-inspired Congolese Workers’ Party (PCT) after the economy had been liberalized and a multiparty system had been introduced. Because of this civil war and the humanitarian crisis that followed, the government was unable to invest in the development of the potentially rich energy sector until the mid-2000s.
The country’s main source of economic growth is the hydrocarbon industry. World Bank data show that nearly two-thirds of the gross domestic product comes from the oil sector and that oil exports account for almost the total of export revenues. As of 2021, oil also supplied 50 percent of the country’s energy consumption, with natural gas providing 33 percent and renewable sources providing the rest. Investments in the oil industry have made possible considerable growth in proven reserves and production since 2006. Proven oil reserves were estimated at 180,000 million barrels in 2023. The country’s oil production shrank from 280,000 barrels per day in 2000 to 227,000 barrels in 2005 because of declining reserves in the older fields, inadequate infrastructure, and difficulties in carrying out exploration to find new fields. However, in 2023, production rose to 273,000 barrels per day.
The Moho-Bilondo field, which started production in 2008, is a particularly important offshore project, both in terms of the quantity of oil extracted and in terms of the technology used. The first deepwater offshore project in Congo, the total-operated field has a production of about 140,000 barrels per day and is estimated to have oil reserves for 230 million barrels. The extraction is made through 13 subsea wells linked into a floating production unit. From this floating production unit, the oil is taken to the Djano onshore terminal through a 49-mile (80-kilometer) pipeline. Chevron and the Société Nationale des Pétroles du Congo (SNPC) also have a share in the interest license of the field.
SNPC oversees the activities connected with oil production and exploration in the country. Foreign companies are entitled to work in the Republic of the Congo through production-sharing agreements (PSAs) with SNPC so that the Congolese government is guaranteed a steady flow of revenue. The main international companies operating in the nation are Total, Eni, and Perenco, while Likouala S.A. is a private domestic company and Congorep is a Perenco-SNPC conglomerate.
In 2023, the country earned $916 million in oil exports, with its fastest-growing market being Portugal. In 2022, its main exports included the United Arab Emirates ($602 million), Portugal ($570 million), the United Kingdom ($215 million), and China ($131 million).
The Republic of Congo began exporting liquified natural gas (LNG) for the first time in February 2024 when the first phase of a two-phase project began operating. In the beginning of 2024, the country had about 10 trillion cubic feet in natural gas reserves. Its Tango FLNG facility has a production capacity of 29 billion cubic feet per year. A second, larger facility will have a production capacity of 115 billion cubic feet per year. It was expected to begin operating in 2025.
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Bibliography
Central Intelligence Agency. “Congo, Republic of the.” In The World Factbook, 24 July 2024, www.cia.gov/the-world-factbook/countries/congo-republic-of-the. Accessed 30 July 2024.
"Congo Brazzaville Becomes a Liquified Natural Gas Exporting Country." US Energy Information Administration, 29 May 2024, www.eia.gov/todayinenergy/detail.php?id=62143. Accessed 30 July 2024.
"Crude Petroleum in Democratic Republic of the Congo." Observatory of Economic Complexity (OEC), May 2024, oec.world/en/profile/bilateral-product/crude-petroleum/reporter/cod. 30 July 2024.
US Energy Information Administration. “Country Analysis Brief: Congo (Brazzaville).” www.eia.gov/countries/country-data.cfm?fips=CF. Accessed 30 July 2024.