Recently, the Republic of Congo (Brazzaville) and Southern Petrochemical Group Yonghua Company officially signed a $23 billion oil and gas development agreement, in which the two sides will jointly develop three oil and gas blocks: Banga Kayo, Holmoni, and Cayo. According to the agreement, the goal is to increase the daily oil production of Congo (Brazzaville) to 200000 barrels by 2030, and strive to achieve a cumulative production of over 1.3 billion barrels in these three blocks by 2050.

This agreement is a core component of the economic and fiscal strategy of the Republic of Congo, with an expected total investment of over 23 billion US dollars, which will bring significant fiscal revenue to the country in the future. The project not only focuses on crude oil extraction, but also emphasizes the comprehensive utilization of associated gas to promote energy independence and reduce conventional combustion. The cooperation also includes the construction of training centers to cultivate multi-level energy technology talents for the local area, enhance local employment and professional capabilities.

In addition, the project will construct comprehensive gas commercialization facilities, gradually expanding the production scale of LNG, LPG, butane, and propane, and enhancing export capacity while meeting the domestic energy demand of Congo (Brazzaville). The supporting infrastructure includes gas treatment, autonomous power generation, and water management systems.

Yonghua Company has established a solid foundation in the Banga Kayo oil field in Congo (Brazzaville). The onshore block currently has about 237 to 250 wells drilled, with a daily production of about 45000 barrels, approaching peak production capacity. The revised Production Sharing Contract (PSC) signed by both parties last year outlined a three-stage development plan for the block, demonstrating the key role of public-private partnership models in promoting the commercialization of resources in Africa.

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