BRAZZAVILLE, Republic of the Congo, February 12, 2025/AGN/ – The upcoming Congo Energy & Investment Forum 2025, set for March 24-26 in Brazzaville, will feature critical discussions on the much-anticipated Gas Code a regulatory milestone designed to enhance gas exploration, production, and commercialization. This framework is expected to boost investor confidence and unlock the full potential of the country’s vast natural gas reserves.
Leading these discussions is CLG Congo, a premier legal and commercial advisory firm specializing in the energy sector. In an exclusive interview with Energy Capital & Power (ECP) (www.EnergyCapitalPower.com), Yves Ollivier, Managing Director, and Daoudou Mohammad, Director of Tax & Legal at CLG, shared insights into the Gas Code, Congo’s regulatory landscape, and emerging investment opportunities.
CLG’s Role in Congo’s Energy Sector
What is CLG’s involvement in the energy industry, and what are its recent activities?
CLG Congo is a leading provider of legal, tax, and commercial advisory services for oil and gas companies. In 2024, the firm played a crucial role in Trident Energy’s acquisition of Chevron and TotalEnergies’ interests in key oil fields, including Lianzi, Nkosa, Nsoko 2, and Moho Bilondo. As a result, Trident now holds:
- 15.75% in Lianzi Field
- 85% in Nkosa and Nsoko 2 Fields
- 21.5% in Moho-Bilondo Field
To expand its network and enhance investor engagement, CLG actively participates in major energy events, including African Energy Week in Cape Town, and proudly serves as legal counsel for CEIF 2025.
How Congo’s Legislative Framework Affects Energy Investments
How does the Republic of Congo’s regulatory framework impact foreign investment in hydrocarbons?
With 80% of foreign direct investment (FDI) in Congo stemming from oil and gas, the government has implemented various measures to improve investment conditions. These include:
- Establishing a Public-Private Partnership (PPP) Agency
- Creating a Ministry for International Cooperation & PPPs
The 2016 Hydrocarbons Code introduced competitive bidding for exploration rights, enhancing transparency and investor confidence. However, a Gas Code is still needed to provide a comprehensive legal framework for natural gas investments. The current draft, developed with international institutions, aims to streamline regulations and attract foreign capital, making the industry more structured and competitive.
Fiscal Incentives for Energy Investors in Congo
What tax and financial benefits does Congo offer to energy investors?
The government provides various fiscal incentives to attract oil and gas investments, including:
✅ Corporate tax exemptions and progressive tax reductions under Production Sharing Contracts (PSCs)
✅ Customs incentives, such as the IM5 temporary import regime, allowing tax-free equipment imports if re-exported after use
These cost-cutting measures enhance profitability and make the Congolese energy sector more appealing to investors.
Key Expectations for the Gas Code and Regulatory Reforms
What are the main expectations from the Gas Code, and how will it improve investment conditions?
The Gas Code, set for approval in 2025, will provide:
🔹 A structured legal framework for gas monetization, fiscal policies, and resource management
🔹 Clear guidelines for foreign and domestic investments in natural gas
🔹 Support for the Gas Master Plan, developed by SNPC and McKinsey, to boost gas utilization and attract investments
A major regulatory challenge is the 2023 VAT decree (2023-1337), which extends Value-Added Tax (VAT) to previously exempt oil and gas operations. Ongoing negotiations between government officials and industry leaders aim to reach a mutually beneficial resolution.
Local Content Development in Oil & Gas
How is local workforce development progressing under the current legal framework?
Despite the 2019 Local Content Decrees, enforcement remains a key challenge. The law mandates:
✅ 70% Congolese employment in management roles
However, a lack of compliance monitoring leads to inconsistent implementation. Strengthening verification processes is essential for sustainable workforce development in Congo’s oil and gas industry.
Investment Prospects at the Congo Energy & Investment Forum 2025
What are the key expectations for CEIF 2025?
The Congo Energy & Investment Forum 2025 will be a major platform for:
📢 Engaging with foreign investors and showcasing Congo’s gas potential
📢 Highlighting investment opportunities in projects like Eni’s Tango FLNG and Wing Wah’s Banga Kayo Gas Project
📢 Advancing discussions on regulatory reforms, including:
- The Gas Code
- The VAT decree
- Hydrocarbons Code updates
With proven gas reserves of 284 billion cubic meters, Congo presents immense opportunities for global energy investors. CEIF 2025 will facilitate direct dialogue between policymakers and industry leaders, ensuring a more competitive and attractive investment environment.
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