The Republic of Congo has signed an amended Production Sharing Contract (PSC) with China’s Wing Wah Oil Company for the Banga Kayo block.

The development of the project will be critical for enabling the country achieve its goal of doubling its hydrocarbon production to 500,000 barrels per day (bpd), thereby boosting export revenues and driving economic growth.

Under the terms, the partners have agreed to develop the project in three phases, with the first - featuring the start of production - kicking off in August 2024.

The second stage, focusing on the commercialisation of resources, will start in February 2025 while the third and final phase - comprising marketing and distribution - will start in December 2025.

For Congo, partnering with private companies and global E&P firms has already yielded positive results, with the country witnessing a strong pipeline of projects across the exploration and production space.

Led by energy major Eni, the country awaits first cargoes from its inaugural natural gas liquefaction project. The development comprises the installation of two FLNG vessels at the Marine XII concession.

Companies like independent explorer Perenco - which made a discovery at the PNGF Sud license in 2022 - and energy major TotalEnergies - set to drill the Niamou-1 well on the Marine XX block - are spearheading exploration efforts.

Meanwhile, the national oil company, SNPC, is expected to boost its own production capacity by 10,000 bpd this year, showcasing a commitment to production growth as well as the wealth of opportunity in the market.