The French oil group Total has renewed for twenty years its contract in co-management of the Djeno oil terminal which centralizes, off Pointe-Noire, all the production of the Republic of Congo before export, it was learned Tuesday from its officials.
The future of the oil terminal was at the center of several options, including that of the possible nationalization of its activities under the auspices of the National Oil Company of Congo (SNPC).
At the end of the meeting held on November 3, 2020 in Oyo between the Congolese Head of State Dénis Sassou Nguesso and the Chairman and Chief Executive Officer of the Total Group, Patrick Pouyanné, an agreement was reached. It stipulates that the Congo and Total have agreed on a new contract that now allows for co-management of the terminal and surrounding oil fields by a consortium that now includes the Congolese state Total and other companies.
It was agreed to renew the concession of the Djeno Terminal, which is a historical anchorage of Total in Congo, for another 20 years. Total’s history of this step will continue in good confidence with the authorities. A new era is about to begin. The important thing for us is that the terminal be operated in safe conditions and that it is always available to all operators in the Republic of Congo.Patrick Pouyanné – CEO of Total
According to Jean-Marc Thystère Tchicaya, Congolese Minister of Hydrocarbons, the first agreement between the two parties should end on November 18.
The Djeno terminal processes more than 95 percent of Congolese crude oil production, or about 220,000 barrels per day. Pending the implementation of the new agreement, the characteristics of which have not been disclosed, Total E&P Congo held 63% of the shares and ENI Congo 37% at this site. Despite the drop in the price of oil on the international market, this raw material represents more than 70% of the country’s revenues.
Until then, Total held 63% of the shares in the management of the Terminal against 37% for the Italian group Eni.
This contract is concluded at a time when the Congolese State is looking for new sources of income after the 50% drop in its budget revenues and the long wait for financing from the International Monetary Fund.
The Terminal will be shared between various companies and Total will be one of the main shareholders. The Republic of Congo will have its share as well as other operators such as Eni and Perenco.Patrick Pouyanné – Total CEO to the press
The Djeno Terminal gathers all the cargoes coming from the different fields.