At the close of Q3 2023, the World Bank highlighted that the Republic of Congo’s GDP was forecast to grow at a rate of 3.2% in 2023, rising to 3.5% on average in 2024-2025.
This was, in part, credited to the country’s oil industry, which accounts for around half of the country’s GDP, as well 80% of its exports.
Supporting the country’s growth in the oil sector is the The Société Nationale des Pétroles du Congo (SNPC), the national oil company, which has six subsidiaries throughout the oil industry chain (SONAREP, ILOGS, SFP, SNPC Trading, CORAF, and SNPC D). In its March 2023 financial statement, it returned $44 million to the Congolese government in dividends.
“The aim of the SNPC is to return the profits of the Congo’s oil industry back to the country, ensuring opportunity and stability for its people. We’re really proud of this achievement, as well as submitting the financial report to the government on schedule,” shared Maixent Raoul Ominga, the SNPC’s General Director.
The Progression of the Performance 25 Program
Speaking to Business Enquirer in May 2023, Mr Ominga, discussed the business’ Performance 25, a program designed to increase company revenue; reduce company costs; support governmental action; and better governance and control of activities.
Nearly a year on, the SNPC is seeing great success from the program’s measures.
“We have recently invested in new drilling and production equipment, most of which is now on site and in action. By updating the equipment, our colleagues are able to complete their jobs to a much better standard, and it’s also reducing down-time,” Mr Ominga explained.
An eight week shut down of SNPC’s refinery has seen a revision of all its equipment, and the business is proud to share that it has restarted its operations without incident.
The SNPC has also invested significantly in training in 2023, with 125 training sessions benefitting 1200 employees.
“As our aim is to better the lives of people in our country, training has been paramount. It has enabled access to jobs within the oil industry for more people,” added Mr Ominga
To ensure both the future of the SNPC and the people of Congo, in 2023, the company discussed with Business Enquirer its groundbreaking study to identify potential greener energy resources sheltering in Congolese subsoil. The SNPC has discovered resources of both hydrogen and helium in the Congo.
The SNPC also recently announced a memorandum of understanding with Sonatrach, the Algerian National Hydrocarbon Company. “The historic agreement aims to strengthen both companies’ development within hydrocarbon exploration and development,” explained Mr Ominga, “we are excited to share technology and establish a training partnership with Sonatrach, which is a leading player in the industry”.
The two companies have agreed that the partnership will enable the exploration of new opportunities, whilst promoting innovation, and contributing to the economic development of both the Congo and Algeria.
The SNPC has also agreed a partnership with Eni Congo, Eni SPA, and Lukoil for the purchase and sale of LNG.
The LNG Marine XII project, which is set to be discussed at Italy-Africa Summit in Rome , has seen a substantial investment of nearly $5 billion, with an ultimate goal of reaching an annual LNG export of three million tons.
“Whilst this is an historic achievement which highlights our dedication to the exploration, production, and export of hydrocarbons, the SNPC also appreciates the significance of oil’s role within our country’s economy,” said Mr Ominga, “with the SNPC contributing to 75% of the state’s budget, we will take time with our transition to ensure the vital balance of our economy”.
Although many measures are under way to support Performance 2025 program success, the SNPC will launch further initiatives in the coming months to achieve its goals.
The business has plans to modernise its existing refinery and explore the opportunity to establish a new facility. In honour of the SNPC’s 25th anniversary, it has also begun the construction of a new headquarters in Pointe-Noire, which is planned to complete within the next 18 months.
“As SNPC is a national company, we want to enable as many people in the Congo as possible to access our products. With this in mind, we’re also embarking on a project to increase our service stations across the country, particularly in regions where there is more challenging access,” shared Mr Ominga.
Commitment to the Future
As part of its CSR policy established within Performance 2025, the SNPC has made a commitment to contributing to the preservation of the environment, particularly through actions aimed at reducing greenhouse gas emissions and achieving carbon neutrality by 2050.
One such initiative is its Eco Zamba project. Planned over a period of twenty years, the Eco Zamba project aims to create a forestry and agroforestry plantation over 50,000 hectares in the country’s Plateaux Batéké region.
Eco Zamba is also boasts an agroforestry initiative, allowing local populations and industries to take advantage of 4000 ha of trees with species adapted to economic use.
In 2024, the SNPC plans to plant 1,000 hectares, adding a further 6,000 hectares per year from 2025 onwards
“This project will have significant positive impacts which includes the implementation of regenerative silviculture of soils and forest ecosystems, the development of agricultural sectors and, importantly, a new timber industry which will see the generation of additional jobs,” explained Mr Ominga.
Ensuring that the country’s people continue to benefit from the oil produced in the country, the SNPC Foundation has established a 400-bed boarding school located in the north of the Congo.
“The boarding high school is a stand out project for SNPC, and is considered one of the most modern schools in the country,” shared Mr Ominga.
A testament to the efforts of the SNPC Foundation on this project, it has become the blueprint for further schools.“The partnerships being formed across our business, be it exploration or social initiatives, is evidence of the SNPC and our country’s commitment to betterment. Now, we are encouraging more businesses to consider partnerships, investment, and knowledge sharing with the SNPC,” said Mr Ominga.