The Republic of the Congo has sealed a landmark $23 billion hydrocarbon agreement with Chinese energy company Wing Wah, aimed at significantly raising oil production and boosting local content in the sector.
Deal Highlights
The agreement covers the Banga Kayo, Holmoni, and Cayo permits, with Congo targeting a rise in national oil output to 200,000 barrels per day by 2030. By 2050, cumulative production from these sites is expected to surpass 1.3 billion barrels.
The pact was signed in August by Congo’s Minister of Hydrocarbons Bruno Jean-Richard Itoua, Minister of State Jean-Jacques Bouya, and Wing Wah President General Xiao Lianping. It commits major investment while also promising substantial fiscal benefits for Congo’s economy.
Beyond Oil Extraction
The project goes further than crude production. It emphasizes gas monetization, with phased expansion of LNG, LPG, butane, and propane facilities to serve both local demand and export markets. It also includes:
• On-site power generation and water management systems for efficiency and community benefit
• A training center to enhance skills and ensure Congolese citizens benefit from new jobs
• Measures to reduce routine flaring by utilizing associated gas
So far, between 3,000–3,300 Congolese workers are directly employed in the developments, with surrounding communities gaining from excess electricity and treated water.
Wing Wah’s Current Operations
Wing Wah already plays a key role in Congo’s energy sector. At the Banga Kayo block, the company operates around 237–250 wells, producing roughly 45,000 barrels per day, close to its peak target of 50,000–80,000 bpd.
The Republic of the Congo amended its Production Sharing Contract (PSC) for the Banga Kayo field last year, signaling the beginning of intensive development.
A Strategic Step for Africa
The African Energy Chamber welcomed the deal, noting that Congo’s approach to hydrocarbon development is setting an example for other African nations.
“Congo’s rapid move to unlock its oil and gas resources represents a model for the continent. With clear targets and major investments, the country is positioning itself for long-term growth through energy,” said NJ Ayuk, Executive Chairman of the Chamber.