The Congolese Ministry of Hydrocarbons has signed an amended Production Sharing Contract (PSC) with China’s Wing Wah Oil Company for the Banga Kayo block, in an attempt to maximise undeveloped hydrocarbon resources. The agreement paves the way for a higher oil production from the Banga Kayo block (up to 80,000 bbl/d at the end of 2025) and for the development of an associated gas production project. The phased development plan aims to start gas production in August 2024, followed by commercialization and distribution stages (expected in February and December 2025, respectively).
Banga Kayo is owned by China’s Wing Wah Oil company (85%) together with the Congolese national oil company SNPC (15%). Wing Wah is an affiliate of Southernperc, a Chinese energy group. Congo produced 268,500 bbl/d of oil in 2022 and aims to double its production to 500,000 bbl/d.