Africa
THE Democratic Republic of the Congo’s, DRC, newly-appointed Minister of Hydrocarbons Aimé Sakombi Molendo has joined the Angola Oil & Gas (AOG) conference – taking place October 2-3 in Luanda – to discuss opportunities for regional collaboration in the oil and gas sector. Minister Molendo has expressed his intention to implement bold reforms to enhance transparency, efficiency and the overall attractiveness of the industry in the DRC, with the aim of supporting new investments and commercial finds. Collaboration with Angola – sub-Saharan Africa’s second largest oil producer – will further support this objective.
With up to 5 billion barrels of estimated oil reserves, the DRC is inviting investors to seize opportunities in the country’s largely undeveloped upstream sector, and recent exploration milestones are expected to entice new investors. Specifically, independent hydrocarbon producer Perenco – through its offshore DRC subsidiary Muanda International Oil Company – made an oil discovery at the Moke-East well in the DRC coastal basin in 2024. Part of a broader campaign to unlock further hydrocarbon resources in the country, the well represents the first discovery made in the DRC in three decades.
To maintain upstream success, the country is currently seeking applications for its 2022 Bid Round, offering 24 blocks for exploration. Bidding will close in Q3, 2024, with 6 contracts already awarded. Additionally, licenses for three Lake Kivu gas blocks were awarded to North American energy companies Symbion Power, Winds Energy & Production and Alfakiri in January 2023, paving the way for the development of a $300 million, 60 MW gas-to-power project.
To further support upstream investments, the DRC launched an upstream market expansion initiative in 2022, aimed at unlocking oil reserves valued at up to $650 billion.
Beyond upstream investments, the country is strengthening its collaboration with regional neighbors to stimulate development and resource monetization. The DRC signed an agreement with Angola in July 2023 for the joint development of the Chevron-operated Block 14 – situated on the maritime border of the two countries. Formalizing nearly two-decades of negotiations, the agreement defines the terms and general principles of exploration activity as well as production sharing and ownership. In addition to block development, the agreement is poised to encourage further investment from Chevron as well as other investors seeking offshore opportunities.
The respective national oil companies of the DRC and Angola also signed an oil by-products agreement in December 2023, supporting cross-border petroleum trade.
Minister Molendo’s participation at AOG 2024 serves to further strengthen collaboration between the DRC and Angola. With over 75% of Angola’s crude production derived offshore, the country offers significant insights for an emerging player such as the DRC. During the AOG 2024 conference, Minister Molendo will deliver a keynote and is also joining a panel discussion on Bridging Borders: Leveraging the Oil & Gas Sector to Advance Regional Trade. This participation reflects the DRC’s commitment to harnessing the full potential of its oil and gas to support economic growth across the sub-Saharan African region.
AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.
Distributed by APO Group on behalf of Energy Capital & Power.
A.I
Aug. 24, 2024
Tags:
