The African Export-Import Bank (Afreximbank) and Trident OGX Congo have partnered to support an increase in crude oil production in the Republic of the Congo.
The two inked a US $300M deal to boost production from the Mengo-Kundji-Bindi II (MKB II) oil fields by 30%. These oil fields are situated between the port city of Pointe Noire, the Mayombe mountains foothills, and the border with Angola’s Cabinda province.
The funding is intended to partially finance and initiate a seven-year development program for the MKB II permit area. Trident OGX Congo is a wholly-owned subsidiary of Singapore-based Trident OGX International. Additionally, the Republic of the Congo’s national oil company, Société Nationale des Pétroles du Congo, and Orion Group are shareholders in the oil fields.
READ:Kenya Power kicks off Rapid Results Initiative
Environmental standards
Afreximbank’s President and Chairman, Benedict Oramah, stated that this project is expected to bring approximately US $1.5bn in investment into Congo’s oil and gas sector. The increased production is projected to generate significant revenues, leading to the creation of more jobs and the development of socio-economic infrastructure in Congo.
Oramah mentioned that the operations at the MKB II oil fields will adhere to best practices in environmental standards, specifically mentioning the use of hydraulic fracturing (fracking) processes. The deal is anticipated to create business opportunities and contribute to the growth of Congo’s Gross Domestic Product (GDP).
Afreximbank sees itself as a source of financing for reserve-based lending facilities in Africa, particularly for projects in the energy sector. They have acknowledged that there is significant demand for such financing on the continent, as international banks have been withdrawing from funding fossil fuel projects.