French oil major, TotalEnergies, has unveiled a $600 million investment deal in the Republic of Congo just days after opting for Angola over Nigeria for a substantial $6 billion energy project.
Earlier this week, TotalEnergies’ CEO Patrick Pouyanné cited policy inconsistencies and other issues in Nigeria as the reasons for choosing Angola for the $6 billion investment. Following this, TotalEnergies announced its $600 million investment in Congo aimed at oil production and exploration, bypassing Nigeria, Africa’s largest oil producer.
According to a press statement released on Thursday, the $600 million will finance exploration and maintain production in Congo’s deep offshore Moho Nord field. Pouyanné expressed optimism about potential discoveries in the field, with two drilling rigs having arrived at the site this month.
The statement also noted that in April, TotalEnergies, through its subsidiary TotalEnergies EP Congo, signed an agreement to acquire a 10% stake in the Moho permit from Trident Energy. This transaction will give TotalEnergies a 63.5% operating stake in the permit, while Trident Energy will hold 21.5%, and the Republic of Congo’s national oil company, Société Nationale des Pétroles du Congo (SNPC), will have a 15% stake.
NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), highlighted the significance of TotalEnergies’ investment. He stated that such partnerships could significantly alleviate energy poverty and drive industrialization in Africa.
This move comes shortly after Pouyanné, speaking at the Africa CEO Forum in Kigali, Rwanda, explained the company’s decision to invest in Angola over Nigeria. He pointed to Nigeria’s inconsistent policymaking and perpetual legislative debates as deterrents for long-term investments. In contrast, Angola’s stable policy framework provided a more reliable environment for large-scale projects, such as the recently announced $6 billion energy project.
Pouyanné emphasized that Nigeria’s Niger Delta remains a highly prolific area for oil exploration. However, due to the ongoing policy debates, there has been no new oil exploration in Nigeria for 12 years. He urged Nigeria to establish a stable and trustworthy investment framework to attract future projects.
