Congo Energy & Investment Forum roots for more gas exploration

The Republic of Congo is making significant strides in attracting investments in the gas exploration sector, as highlighted at the recent Energy & Investment Forum. Lucinda Valerie Ross, a Senior Technical Analyst at S&P Global, sheds light on the country's plans to bolster its gas exploration industry. Ross highlighted that while there are ongoing and sanctioned projects in Congo set to come online in the coming years, the natural decline in production poses a challenge to sustain the target of 500,000 barrels per day. Numerous potential projects in the country await Final Investment Decisions (FID) and require substantial investments to progress and thrive. Compared to its African peers, Congo stands out as a favorable investment destination due to its straightforward and easy-to-understand fiscal terms. However, Ross noted that neighboring countries like Sao Tome and Principe, Namibia, Angola, and Nigeria have revamped their fiscal terms to allure more investments. Ross emphasized the importance of Congo's gas code to attract investors and leverage the nation's vast gas potential. With a focus on gas development, the Congolese government is pushing towards expanding its gas sector amid a global surge in gas demand. Ross pointed out that recent geopolitical events have further underscored the significance of gas as a reliable energy source. Notably, companies like Eni have already committed to gas projects in Congo, including the Marine 12 FLNG development, reflecting an optimistic outlook for the country's gas industry. In terms of exploration trends, Congo is witnessing a shift towards offshore exploration in deeper waters, driven by the maturation of shallow shelf regions and technological advancements enabling drilling in previously inaccessible areas. Despite challenges posed by the economics of offshore gas discoveries, such as the need for intricate infrastructure due to location factors, operators remain focused on exploring new opportunities. The Energy & Investment Forum served as a platform for stakeholders to discuss strategies for attracting investments in Congo's gas sector. Ross expressed optimism about the prospect of implementing incentives akin to those adopted by neighboring countries to stimulate investment in Congo. As the nation gears up for the unveiling of its gas code, industry players are hopeful that it will enhance the investment environment and unlock the full potential of Congo's gas resources.