Interview with Bruno Jean Richard Itoua, Minister of Hydrocarbons since May 2021, who is in charge of the oil and gas sector in connection with the challenge of the energy transition. In 2022, he held the rotating presidency of OPEC.
What are the challenges of building the mega-center for the production and liquefaction of natural gas, which was launched on April 25 by President Denis Sassou Nguesso?
The project in question represents a significant economic advancement for the Republic of Congo, positioning itself in a rapidly growing LNG sector. It is notable that the price of liquefied natural gas has increased tenfold in the space of two years. This development of natural gas is intended to stimulate the country's economic growth by generating a new industrial complex that will generate revenue for the government. This initiative will also equip us to meet our internal energy requirements by transforming gas into electricity. This electricity will be crucial for supporting sectors such as mining and forestry, and for expanding domestic gas distribution, while gas could boost industries, including those planned in special economic zones, and particularly fertilizer production.
Furthermore, this project will position the Republic of Congo among the relatively small circle of LNG exporting nations. Specifically, the schedule anticipates production beginning in the third quarter of 2023, with LNG exports projected to reach more than three million tonnes per year (3 MTPA) by the end of 2025. The export modality will be via two floating natural gas liquefaction units, or LNG carriers, with respective capacities of 0.6 MTPA and 2.4 MTPA. It should be noted that the latter LNG carrier will begin operations in 2025. Alongside these actions, offshore development strategies will be deployed, targeting oil fields such as Minsala and Nkala. These sites will see drilling operations for new wells as well as the establishment of infrastructure dedicated to gas processing, liquefaction, and storage.
Do you want to attract international investors, particularly in offshore exploitation activities?
Our economy's dependence on oil and gas, which accounts for 701,000 billion of our revenue, underscores the vital importance of increasing investment in this sector. This is all the more crucial in the wake of the global economic slowdown caused by the Covid-19 crisis.
To date, we have successfully mobilized nearly ten billion US dollars for the Congolese oil industry. An increase in foreign direct investment is envisaged to stimulate the industrial ecosystem of the oil sector. The expected immediate benefits include job creation, particularly through the resumption of activities within oil service and provision companies, as well as across the entire service chain related to oil exploitation. With this in mind, we are working to develop a highly attractive financial environment to maximize our oil production potential. This will enable investors wishing to establish themselves in Congo to discover promising oil assets. In collaboration with the State, they will be able to realize projects offering attractive financial returns.
What is the aim of the internal reform of the ministry you are in charge of?
The structuring of a ministry reflects the vision we wish to establish, embodied by a strategy that takes into account the main levers for achieving the set objectives. Given the current energy context and the challenges associated with developing our mineral resources, it has become imperative to adopt more linear methods of analysis, control, and certification. As a result, a thorough reform has become necessary within the Ministry of Hydrocarbons. This reform aims to streamline the chain of command to meet the growing demands of the State.
Furthermore, our mission includes the sustainable establishment of a center of expertise and knowledge to better control the chain of custody. To achieve this, we felt it was essential to redefine the organization of the Ministry of Hydrocarbons. Thus, we structured the ministry around four Directorates General and an Inspectorate, namely:
– General Management of Upstream Oil;
– Downstream Oil General Management;
– General Directorate of Gas;
– General Directorate of Economy and Audit
and Trading;
– General Inspection.