Calgary-based oil & gas production company Zenith Energy has announced a joint venture partnership with a local energy company in the Republic of Congo.
The aim of the partnership is for the Canadian company to potentially acquire an onshore oil production license which is able to produce up to 300 barrels of oil per day (bpd).
The field is located in the regionally proven Mengo formation and production is currently suspended awaiting the assignation of a new license operator. Located in the Koullou region close to the energy capital and second largest city Pointe-Noire and is close to Tilapia, Zenith Energy’s recently acquired oil asset.
“As is known by shareholders, the Company’s senior management is currently in the Republic of the Congo conducting negotiations with the relevant authorities for the attribution of a new 25-year license in relation to the highly prospective Tilapia asset.
Our presence in the cities of Pointe-Noire and Brazzaville, the capital of the Republic of the Congo, has facilitated access to a number of compelling domestic opportunities, which have become even more commercially attractive in view of the recent decline in oil prices. The Potential Acquisition has two key qualities that render it highly compatible to our portfolio: near-term profitable production potential and significant development potential to progressively maximize production on account of the potentially highly significant oil reserves in place which will require independent evaluation under Canadian National Instrument 51-101. I look forward to further updating shareholders in due course on our exciting progress in the Congo,” Andrea Cattaneo, Chief Executive Officer, said in a statement.
The Republic of Congo is the fourth largest sub-Saharan producer of oil, with an output of 323,000 bpd in 2018. Its proven oil reserves amounted to 2.9 billion barrels in 2018, with a reserves-to-production ratio of 15.8%.