Congo: CLG Experts Unpack Upcoming Gas Code and Investment Opportunities
Please provide an overview of CLG's current activities in the Congo, particularly in relation to the energy sector?
CLG Congo is a leading provider of legal, tax, and commercial advisory services, working closely with oil and gas companies. In 2024, CLG was involved in Trident Energy's acquisition of Chevron and TotalEnergies' interests in the Lianzi, Nkosa and Nsoko 2 and Moho Bilondo fields. Trident now holds15,75% in Lianzi field, 85% in Nkosa and Nsoko 2 fields and 21.5% in Moho-Bilondo. To expand our client base, we actively participate in major energy events, such as African Energy Week in Cape Town and are honored to partner with Capital Energy&Power as legal counsel for CEIF 2025.
How does the Republic of Congo's legislative framework impact foreign investment in hydrocarbons?
Historically, about 80% of direct investments in the country come from oil and gas, reflecting its economic dependence on hydrocarbons. To enhance investment conditions, the government has created investment promotion structures, including a Public-Private Partnership (PPP) Agency and a dedicated Ministry for International Cooperation and for Public-Private Partnership.
The 2016 Hydrocarbons Code introduced competitive bidding for exploration rights, increasing transparency and investor confidence. However, a Gas Code is still needed to provide a specific legal framework for natural gas investments. The current draft, developed with international institutions, aims to secure foreign capital and streamline regulations for a more competitive and structured industry.
What fiscal incentives does Congo offer to attract energy investments?
The government provides among others, corporate tax exemptions and progressive tax reductions for oil and gas projects, negotiated within the Production Sharing Contracts. Companies also benefit from customs incentives, such as the IM5 temporary import regime, allowing tax-free equipment imports under the condition of re-export. These measures lower entry costs for investors and enhance profitability.
What are the key expectations from the Gas Code and how could the regulatory framework improve investment conditions?
The Gas Code, expected in 2025, will provide a clear legislative framework for gas monetization, fiscal terms, and resource management. The draft was presented to gas companies in late 2023, and after modifications, is set for final approval. Additionally, the Gas Master Plan, developed by SNPC and McKinsey, aims to boost investment and expand gas utilization in Congo.
Another key issue is the VAT decree (2023-1337), which extends VAT to previously exempt oil and gas operations. There are ongoing discussions between the government and industry players to find a compromise that suits all parties.
How does the regulatory framework impact local content development in the oil and gas industry?
Despite 2019 local content decrees, enforcement remains a challenge. The law mandates 70% Congolese employment in management roles, but lacks clear compliance mechanisms. Companies try to follow the guidelines, but without effective monitoring, implementation varies. Strengthening verification processes is essential for sustainable workforce development in the sector.
What are your key expectations for the Congo Energy&Investment Forum 2025?
We see this as an opportunity to engage with foreign investors and showcase Congo's gas potential, which includes proven reserves of 284 billion cubic meters and significant ongoing projects such as Eni's Tango FLNG and Wing Wah's Banga Kayo Gas Project. The forum will allow direct dialogue with policymakers, enabling us to propose solutions for industry challenges such as the Gas Code finalization and fiscal reforms. We also aim to highlight investment opportunities and regulatory reforms. Discussing topics like the Gas Code, VAT decree, and Hydrocarbons Code updates is crucial to ensuring a competitive and attractive investment environment.
Distributed by APO Group on behalf of Energy Capital&Power.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
an hour ago
- Zawya
Energean Deepens African Gas Focus Ahead of Silver Partnership at African Energy Week (AEW) 2025
International hydrocarbon exploration and production company Energean will participate as a Silver Partner at this year's African Energy Week (AEW): Invest in African Energies 2025, taking place from September 29 to October 3 in Cape Town. The company enters the conference with a deepened focus on Egypt's natural gas sector. The company aims to optimize its offshore concessions in the country and plans to integrate its three existing licenses – Abu Qir, North El Amriya and North Idku – in the Nile Delta region to streamline costs and enhance productivity. Energean recently launched an infill drilling campaign in the Abu Qir concession. A well drilled from the North Abu Qir PII platform discovered 270 feet of net play in the BKES-1 and Abu Madi formations – double the pre-drill estimate. The well confirmed gas in place between 87 and 129 billion cubic feet and identified a possible 55-foot liquids column, with first production scheduled to begin later this year. As part of its 2025 strategy, Energean is preparing to drill its low-cost East Bir Nus concession in Egypt's Western Desert and is pursuing near-field drilling opportunities around Abu Qir. The company is also targeting deeper horizons with Abu Qir to access untapped resources and accelerate gas-to-market timelines. Beyond Egypt, Energean continues to advocate for a pan-African approach to natural gas development, calling for accelerated timelines, regulatory clarity and stronger regional cooperation to unlock the continent's vast untapped resources. The company recently emphasized that Africa's energy transformation requires bold leadership and integrated planning, noting that natural gas can play a central role in industrialization, job creation and long-term energy security. Energean is also actively engaging with African governments and stakeholders to share technical expertise, promote infrastructure-led growth and support the development of gas value chains that are both economically and environmentally sustainable. Following an announcement in December 2024 that Energean would target new acquisitions across Africa, along with the Balkans, the UK and the North Sea, the company is actively reshaping its portfolio around high-impact, development-ready assets. This strategic shift comes in the wake of the divestment of mature assets and signals a renewed focus on frontier and underdeveloped regions, where Energean can apply its proven development model. 'Energean's continued investment in Egypt and its broader commitment to unlocking Africa's gas potential reflect exactly the kind of pragmatic, forward-looking energy leadership we need. Their integrated approach to development, combined with deep technical capability, positions them as a key partner in driving energy access, industrial growth and long-term security across the continent,' states Tomás Gerbasio, VP of Commercial and Strategic Engagement, African Energy Chamber. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
5 hours ago
- Zawya
Egypt: Madbouly announces price reduction initiatives
Arab Finance: Prime Minister Mostafa Madbouly announced a series of government-private sector initiatives to reduce commodity prices, the cabinet stated on August 13th. In addition, Madbouly said the government will accelerate progress on all matters concerning citizens, including the immediate implementation of the recently approved old rental law. In his weekly press conference following the cabinet meeting, Madbouly unveiled the outlines of initiatives agreed over the past two weeks to lower commodity prices. He noted that the measures are the result of coordination between the government and the federation. Madbouly also addressed speculation regarding the government's strategy for managing unused assets along the Nile Corniche and in historic Cairo. He stressed that developing and investing in these lands, such as converting underused sites into tourism, hotel, residential, or administrative projects, aims to maximize returns without selling or abandoning state assets. Projects will be pursued in partnership with the private sector in line with the State Ownership Policy Document. In Khedivial Cairo, the government will preserve heritage buildings while revitalizing the area through adaptive reuse, improved public spaces, and pedestrian-friendly streets. Development work is also ongoing in Azbakeya Park, the Azbakeya Wall, and Fustat Gardens, which will become the Middle East's largest central park upon completion in September. In the energy sector, Madbouly said Egypt recorded its highest-ever electricity consumption on Tuesday, August 12th, at 39,500 megawatts. On the economic level, Madbouly noted that the government is discussing ways to further reduce profit margins on key commodities to ease prices. He reported growth in exports, remittances, and tourism revenues, with only Suez Canal revenues declining due to geopolitical tensions. The Prime Minister concluded by reaffirming that the state is moving decisively across economic, industrial, and social fronts to improve citizens' lives, strengthen the economy, and protect Egypt's strategic interests. © 2025 All Rights Reserved Arab Finance For Information Technology Provided by SyndiGate Media Inc. (
Zawya
7 hours ago
- Zawya
Jordan's revenues rise by $232mln as public debt drops below 91% of GDP
AMMAN — The Kingdom's domestic revenues increased by approximately JD164.7 million in the first half of 2025, reaching JD4.669 billion compared with JD4.504 billion during the same period last year. Public debt totalled around JD35.3 billion by the end of June 2025, equivalent to 90.9 per cent of GDP, down from 92.7 per cent in May, according to the Jordan news agency, Petra. This reduction followed the Ministry of Finance's repayment of USD1 billion in maturing Eurobonds in June, funded through concessional loans secured in March and April at a competitive interest rate of 4.8 per cent, Petra said. The ministry highlighted that this strategy avoided issuing new Eurobonds, which under current exceptional global and regional conditions could have carried interest rates of up to 9 per cent. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
