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Republic of Congo is building a framework to promote investment to monetise its gas. A decade ago, Bi-Dia-Ayo Ibata wrote a doctorate at the UK University of Dundee entitled The natural gas market in the Republic of Congo: to develop or not to develop? Now she is head of associations at the Ministry of Hydrocarbons and responsible for drawing up a new gas masterplan.Speaking during the 4th Congo International Oil & Gas Conference & Exhibition (CIEHC4) in Brazzaville, Ibata told African Energy the masterplan should be published by September and certainly by year-end.

Anglo African Oil & Gas (AAOG) shareholders voted on 13 January to approve the sale of 80% in AAOG Congo to London-listed Zenith Energy. Zenith also entered into a term sheet for a put and call option agreement over the remaining 20%, depending on the level of production from the Tilapia oil field. AAOG Congo, the former Petro Kouilou, has a 56% interest in the field.

Republic of Congo has awarded three blocks in the second phase of its bid round, which closed on 30 July. Kosmos Energy has been awarded Marine XXII, while a consortium of Eni and Lukoil was awarded Marine XXIV and XXXI. Perenco bid for the Youbi Block, but its bid scored only 38 points, below the 50-point minimum qualifying level. Kosmos’ bid scored 52 points, and Eni Lukoil scored 55 for Marine XXXI and 57 for Marine XXIV.

An announcement from Eni saying chief executive Claudio Descalzi met Democratic Republic of Congo (DRC) President Félix Tshisekedi on 13 September in Kinshasa gave little away, saying only that they discussed forest conservation initiatives and Descalzi outlined prospects for projects to improve electricity distribution infrastructure.However, sources in Kinshasa told African Energy the talks covered the Inga III development, oil and gas exploration blocks in eastern Congo, and prospects for supplying power to the DRC mining sector from a planned expansion to the Centrale Electrique du Congo (CEC) gas-fired power plant in Pointe-Noire, Republic of Congo.

A Congolese company has announced an onshore oil discovery in the Cuvette Basin in northern Congo, which its promoters say could open up a large new area extending into Democratic Republic of Congo and Central African Republic. The discovery was announced by Société Africaine de Recherche Pétrolière et Distribution (SARPD-Oil), founded by Willy Etoka, a business associate of presidential son Denis-Christel Sassou-Nguesso. While only one well has been drilled so far, its initial results were announced at an event at the Hotel Alima Palace in President Denis Sassou-Nguesso’s nearby home town of Oyo.

Russia’s Lukoil has bought New Age (African Global Energy)’s 25% stake in Eni’s Marine XII licence for $800m. New Age and Lukoil are partners in Cameroon, while Lukoil is also a partner with Eni in Kazakhstan, Mexico and elsewhere. The announcement follows a visit to Moscow in May by President Denis Sassou Nguesso, where he held talks with President Vladimir Putin. New Age had sought to offload the stake to a larger company more able to cover the cost of the planned development.

The last month has treated Republic of Congo’s President Denis Sassou Nguesso kindly. His debt-stressed administration has struggled to cope with the impact of lower oil prices – only this year has the International Monetary Fund (IMF) seen early signs of stabilisation after a deep recession since 2015 – and criticism of poor governance. Brazzaville had run out of money to repay external debt – much of it contracted in pre-financing arrangements with China and Swiss oil trading houses – and had struggled to convince the IMF and other creditors it was sincere about meeting commitments to control its debt and spending.

Oslo-listed junior African Petroleum hopes to secure a new lease of life through an all-shares merger with Cyprus-registered PetroNor E&P Limited, which is owned by Norwegian and Emirati interests. PetroNor has a 10.5% indirect interest in the Perenco-operated PNGF Sud fields in Republic of Congo and right to negotiate entry into an adjacent licence covering the PNGF Bis fields. African Petroleum’s sole remaining assets are claims on two blocks in Senegal and Gambia, where it has challenged the respective governments’ decisions to reassign them

The Africa50 infrastructure fund has signed a memorandum of understanding (MoU) with the government to structure and mobilise financing for the expansion of the 300MW Centrale Electrique du Congo gas-fired power plant at Pointe Noire. The project envisages expanding the plant’s capacity from 300MW to 450MW in the short term, and possibly to 900MW by 2027.

Talks are under way between the government of Republic of Congo and the International Monetary Fund (IMF) over a potential three-year Extended Credit Facility (ECF) programme. An IMF spokesperson confirmed to African Energy that talks with President Denis Sassou-Nguesso’s administration were continuing following a mission in November but declined to predict when an agreement might be reached. “The IMF continues to hold productive discussions with the authorities.

Hydrocarbons minister Jean-Marc Thystère-Tchicaya on 6 November formally launched the second phase of Congo’s licensing round, offering 18 blocks. Five of the blocks are in the Cuvette Basin onshore, while three are in the Coastal Basin onshore, five are in the Coastal Basin in shallow water, and five are in deep and ultra-deep water in the Coastal Basin. “The Republic of Congo is committed to the diversification of its economy, and this conference gives us the opportunity to promote our liquid hydrocarbons and gas potential,” the minister said.

A series of appointments by President Denis Sassou Nguesso to Société Nationale des Pétroles du Congo (SNPC) and the Ministry of Hydrocarbons aims to show that Republic of Congo is serious about making its key economic sector considerably more transparent and efficient. Wary that austerity induced by the 2014-17 oil price slump has raised social tensions, the president and his allies are aware of the need to impress the International Monetary Fund (IMF) and other creditors to maintain vital financial flows.

The Organisation of the Petroleum Exporting Countries (Opec) has approved Republic of Congo’s membership application. An Opec statement said its meeting in Vienna on 22 June had considered Congo’s request “and decided to approve its admission with immediate effect”.

London-based Soco International has sold its interests in Republic of Congo to Norwegian-owned Coastal Energy Congo, enabling it to focus on Vietnam. Coastal Energy Congo is a subsidiary of Coastal Energy Holding, a company owned by private Norwegian shareholders which Soco said was specialised in using early production systems for staged field developments.

The Ministry of Hydrocarbons has announced timings for the planned second phase of its licensing round, offering 15 blocks in total – ten new blocks and five deep and ultra-deep blocks that were also offered in Phase 1. The blocks on offer are Marine XXV, Marine XXVI, Marine XXVIII, Marine XXIX, Marine XXXI and Youbi in shallow water, and Niambi, Conkouati, Nanga I and Nanga III onshore, as well as deep and ultra-deep blocks Marine XIX, Marine XXII, Marine XXIII, Marine XXIV and Marine XXX.