Congo: Hydrocarbons Minister Bruno Jean Richard Itoua Touts Investment Opportunities At AEW

By Ajong Mbapndah L [caption id="attachment_109296" align="alignnone" width="2048"] The potential in Congo is enormous and the investment climate is very friendly with great incentives for interested companies, says Hydrocarbons Minister Bruno Jean Richard Itoua[/caption] Congo is one of the few countries in the world where exploration investments in the oil and gas sector have increased says Hydrocarbons Minister Bruno Jean Richard Itoua. Speaking in an interview with PAV on the sidelines of the African Energy Week in Cape Town, South Africa, Minister Itoua cited the example of Perenco as an example of a company whose exploration activities had met with huge success. The potential in Congo is enormous and the investment climate is very friendly with incentives for interested companies, Minister Itoua said. A regular presence at the African Energy Week since its inception in 2021, Minister Bruno Jean Richard Itoua said it was Africa to have a common position in the face of the global debate on energy. “Africans need to discuss and develop their own doctrine openly, not behind closed doors. What's interesting here is that everyone is represented, including African countries, multinational corporations, international and African private sectors. OPEC is present, as is the European Union and the USA,” Minister Itoua said in highlighting the merits and success of the African Energy Week. PAV: Can you sum up the energy landscape in Congo in terms of potential and investment opportunities? Bruno Jean Richard Itoua: It's a significant question, but we can summarize it in three categories. First, regarding crude oil, Congo currently produces about 300,000 barrels per day, but we envision that in the next three years, we will exceed that capacity. There is remarkable progress in terms of oil production, which can be seen in the production levels achieved by international companies. We are one of the few countries in the world where exploration investments have increased. Globally, there has been a decrease in exploration due to financial pressures on banks and other financial institutions that have hampered oil production. However, in Congo, we are witnessing an increase in exploration activities. An example is Perenco, a company that had never undertaken explorations anywhere else. Their first attempt was a success in Congo, and they subsequently expanded to Gabon. We invite companies that believe in the future of fossil fuels, even though we have obligations to reduce carbon emissions, to consider investing in Congo. There are significant potentials here. We have three basins to explore, including the Southern basin and the Northern one, which is yet to be explored, though we know there is oil there. In terms of crude oil, we offer free permits and additional incentives to attract international investors. The second opportunity is in the field of gas. We have an extraction project that began in December, and we anticipate producing 600,000 metric tons in the first year, with a target of three million metric tons per year over the next five years. There are other gas projects in the pipeline that will be explored for the first time. Opportunities for exploration continue to arise, where companies compete to discover gas reserves. We can also talk about associated gas that can be transformed. We aim to improve access to gas for our Congolese citizens, which presents a new challenge. That's why we are establishing a ministerial directorate in charge of gas. We are also working on a gas master plan that will determine our country's strategy in the coming years. The third theme is Marginal Fields. It is essential for us to mention this because they are very accessible for SMEs, local, and African companies. We even encourage international companies to explore these marginal fields because it requires advanced technology, which opens up additional opportunities. We believe that there are more opportunities in this area for investment in Congo. [caption id="attachment_109297" align="alignnone" width="2048"] Africans need to discuss and develop their own doctrine openly, not behind closed doors says Minister Bruno Jean Richard Itoua seen here with African Energy Chamber Chair NJ Ayuk at the AEW[/caption] PAV: What assurances does Congo provide for companies ready to invest? Bruno Jean Richard Itoua: We have a hydrocarbons law in place that was revised in 2016. Our objective was to make it more attractive in terms of justice. We understand that most companies are concerned about fiscal stability, and in this regard, they are covered based on sharing contracts... Currently, sharing contracts are assessed to ensure they are favorable, and we negotiate them case by case while respecting general regulations. Additionally, as I mentioned earlier, we have gas. Companies stand to benefit from various incentives, tax advantages, and exemptions for exports. There are also facilitations in terms of installations. In terms of laws, Congo is very attractive. [caption id="attachment_109299" align="alignnone" width="960"] We have faith in the African Energy Week because it is led by young Africans who believe in Africa and are committed to its growth, says Bruno Jean Richard Itoua in the interview with Ajong Mbapndah L for PAV[/caption] PAV: What is your take on the 2023 African Energy Week, and will you be in Cape Town next year for the fourth edition? Bruno Jean Richard Itoua: We have faith in this initiative because it is led by young Africans who believe in Africa and are committed to its growth. We can collaborate with others. At a time when Africa is grappling with new ideas, such as the need to transition away from hydrocarbons due to concerns about carbon emissions, Africa needs to have a dialogue. Africans need to discuss and develop their own doctrine openly, not behind closed doors. What's interesting here is that everyone is represented, including African countries, multinational corporations, international and African private sectors. OPEC is present, as is the European Union and the USA. This type of dialogue in the energy sector is crucial for us to align our views and determine the way forward because energy has a direct impact on climate change. It's important that these discussions take place at all levels. And for next year, yes count on us for the African Energy Week, we will be there.