French multinational oil company TotalEnergies has decided to steer its investment focus away from Nigeria to bolster its exploration in the Republic of Congo by $600 million.
This decision marks the second time TotalEnergies has overlooked Nigeria in favor of other African nations amid policy inconsistencies and other concerns within the Nigerian oil and gas sector.
Patrick Pouyanne, CEO of TotalEnergies, said the company is investing $6 billion in Angola over Nigeria.
Pouyanne highlighted policy uncertainties and related issues in Nigeria as factors influencing the decision.
In light of this strategic redirection, TotalEnergies has unveiled plans to inject $600 million into the Republic of Congo’s oil production and exploration endeavors, reaffirming its commitment to the African continent.
The investment aims to fund exploration activities and maintain production in Congo’s deep offshore Moho Nord field, a key contributor to the nation’s oil output.
A press statement released by TotalEnergies underscores the significance of this investment, indicating its potential to unlock economic opportunities not only for Congo but also for the broader African region.
The Moho Nord field, where a portion of the investment will be allocated, plays a pivotal role in Congo’s oil production, accounting for approximately half of the country’s total output, equivalent to roughly 140,000 barrels per day.
Expressing optimism regarding the investment’s impact, TotalEnergies CEO Patrick Pouyanne anticipates significant developments in the Moho Nord field, with the arrival of two drilling rigs signaling active exploration efforts.
Pouyanne remains hopeful that these efforts will yield promising discoveries by the year’s end, further solidifying Congo’s position in the global oil market.
Commenting on TotalEnergies’ investment, NJ Ayuk, the executive chairman of the African Energy Chamber (AEC), emphasized the potential for Congo’s oil and gas sector to drive industrialization and alleviate energy poverty across Africa.
Ayuk highlighted the importance of partnerships with companies like TotalEnergies in achieving these objectives, underscoring the pivotal role of foreign investments in Africa’s energy landscape.
In addition to TotalEnergies’ investment, the Republic of Congo stands to benefit from a new strategic partnership with Algeria in the hydrocarbons and energy sectors.
A memorandum of understanding signed between the two countries paves the way for enhanced collaboration, including the development of a roadmap for bilateral relations and the exchange of expertise between Algeria’s Sonatrach and Congo’s SNPC.
The agreement also signifies broader support for the establishment of an African Energy Bank, aimed at directing investments toward oil and gas projects across the continent.
As TotalEnergies redirects its investment focus to Congo, Nigeria faces the challenge of addressing policy inconsistencies and regulatory concerns to attract and retain foreign investment in its oil and gas sector.
