Congo Brazzaville, also known as Republic of Congo, is the fourth largest oil producing country in sub-Saharan Africa. Despite the slump in oil prices in 2014, opportunities in the industry are still kicking. Recently, a new 20-year term licence was approved by the Congolese state oil company, Société Nationale des Pétroles du Congo (‘SNPC’). Schlumberger Limited will supply support services for the drilling of the new oil well, on the Tilapia oil field. Drilling operations should start by June 2018.
Is 2018 the year of Oil and Gas for Congo Brazzaville?
The oil refinery of ‘Pointe-Noire’ accounts for 65% of crude consumption for the country’s domestic needs. Crude production in the country was expected to reach around 260,000 barrels by the last quarter of 2017. However, as of September 2017, crude production had reached 345,000 barrels, therefore exceeding expectations.
As crude prices began to stabilize by the end of 2017, hopes for the oil and gas industry revived. Congo is currently adopting many strategies to stay ahead of competitors. Their main objective is trading its 4th place for the 3rd place, amidst the sub-Saharan African countries. Therefore, chances of expansion in the Oil and Gas industry seem very good.
Following a project launched by Total E&P Congo Moho Nord in 2013, the country should have already outdone Equatorial Guinea and be the third largest crude producer in sub-Saharan Africa. This project had the potential of increasing Congo’s crude production by 50% in 2017. Nevertheless, Congo Brazzaville is finding new ways to get to the third spot.
Congo Brazzaville and OPEC
OPEC (Organisation of the Petroleum Exporting Countries) is an intergovernmental Organisation of 14 nations which are significant oil producing countries. Congo Brazzaville aims to join OPEC soon, since the latter has a major influence on global crude prices. With global oil prices dipping over the years, OPEC even refused to change its crude price/barrel.
The Republic of Congo’s crude prices were on the slope during the the latest global price dip. However, crude oil prices rejuvenated as the news was leaked that the country may soon join the OPEC cartel. This highlights their authority and control over global crude oil, since they have a large amount of crude in stock.
Italy’s ENI and France’s Total are among the main crude operators in Congo. If successful in its endeavors to join OPEC, Congo Brazzaville will be on its way to become the 3rd largest crude producer in sub-Saharan Africa.
How to take advantage of this opportunity
The scope of growth in the Oil and Gas industry is highly optimistic for the Republic of Congo. With tested and proven Professional Outsourcing Solutions in more than 50 countries, Africa HR Solutions (AHR) can assist you in your projects over the African Continent. AHR takes charge of employment and payroll outsourcing, tax guidance, immigration solutions, medical and repatriation services, among its array of services.
Helping you to expand your business anywhere on the African Continent, Africa HR Solutions aims to provide you with the best PEO (Professional Employer Organisation) solutions. To obtain a quote or any information, contact our Head of Sales and Marketing, Clinton Ross on +230 465 3100.