Republic of Congo - Petroleum Sector Republic of Congo - Petroleum Sector
Overview
The Republic of Congo is the fourth largest oil producing country in sub-Saharan Africa and is expected to produce 260,000 barrels per day by the end of the last quarter of 2017. Oil accounts for over 90% of Congolese exports. By 2018, production is expected to grow to 350,000 barrels per day as new offshore fields come on line. Despite new finds and better drilling technology, oil production is still expected to decline to 275,000 barrels per day by 2020 as older oil fields are retired.The Republic of Congo has one oil refinery in the coastal city of Pointe-Noire, which fulfills about 65% of the country’s domestic needs. The government is in the process of upgrading the refinery to increase its production capacity, and there is continual talk of building an additional refinery although no concrete plans have been announced.
There is currently one American company active in oil production in the Republic of Congo, Chevron Congo. Other American oil companies have conducted exploration in the Republic of Congo but have not yet begun production. Additional American companies, including Halliburton and Baker Hughes, participate in the industry via provision of oil services. The proposed merger of Halliburton and Baker Hughes has fallen through, and they continue to operate as separate companies.
| 2014 | 2015 | 2016 | 2017 (Estimated) | |
|---|---|---|---|---|
| Total Local Production | 89.8 | 83.7 | 87.3 | 99.4 |
| Total Exports | 84.2 | 81.3 | 85.7 | 96.5 |
| Total Imports | N/A | N/A | N/A | N/A |
| Imports from the US | N/A | N/A | N/A | N/A |
| Total Market Size | 5.6 | 2.1 | 1.6 | 2.6 |
| Exchange Rates | 493.53 | 591.42 | 592.44 |
(total market size = (total local production + imports) - exports)
Data sources: Republic of Congo Ministry of Hydrocarbons
Leading Sub-Sectors
Oil services remain important in both the development of new fields and the maintenance and support of older fields.Opportunities
Offshore drilling and exploration remain the principal activities, but some opportunities exist in onshore prospection, refining, research and development, and services (e.g., logistics, construction, drilling, maintenance, and supplies).The Republic of Congo enacted a new hydrocarbons law in October 2016. Eight blocks were available for bid at the national bid round in January 2017; however, the challenge of low oil prices remains a damper on the sector.