Total South Africa, the French oil major estimates that an investment of USD 10 billion may be required to develop the Moho Bilondo Nord offshore oil project in one of Africa’s largest economies, the Congo Republic.
According to a statement by ESI, an online publication on the continent the Brazzaville capitaled nation in Central Africa was seeking to raise USD 10 billion to increase its strategic oil reserves and remain self reliant and overcome shortages.
Mr Christophe de Margerie CEO of Total as saying after a meeting with President Mr Denis Sassou N'Guesso recently that “The Moho Bilondo Nord project is the future of petroleum exploration in Congo around 2015 to 2017. A team is currently working to define the project which will need an investment of USD 10 billion. There are still lots of hydrocarbons in this country we are a long way off reaching all that there is to develop.”
Total said last year that the Moho Bilondo Nord field contained about 300 million barrels of oil, and that a decision on development could be taken by the middle of 2011. It is part of the overall Moho Bilondo development. Capital expenditure and profits are split three ways Total, the operator with 53.5% interest; US based Chevron, 31.5% and the Congolese national oil company, SNPC, 15%.
A dozen Western oil companies operate in Congo, where oil accounts for around 70% of proceeds to the state. Total by itself accounts for 60% of Congolese crude production with output this year due to hit 127 million barrels up from 114.5 million in 2010.
A company spokesman said that in a related development, South African national power utility, Eskom Holdings has been functioning during the coal-sector strike because it has 38 day stockpiles at power stations around the country.
Mr Tony Stott spokesman of Eskom said that “If the strike lasts only a week or so it is unlikely to affect us, but if it is protracted it could put a strain on our contingency plans. What we are concerned about is that, once the strike is over, we need the coal workers to produce coal additional to the normal demand to recover those stockpiles because we do not want to go into the rainy season with low stockpiles. Some power stations might not function at full capacity if stocks are low and coal piles become wet in the rain.”
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
