The President and CEO of Unite Oil and Gas, Yachtze Luchin, says he sees phenomenal opportunities for investment in Congo’s energy sector. In a chat with CNBC Africa’s Kenneth Igbomor at the inaugural Congo Energy and Investment Forum, he notes the company’s interest are in onshore as well as shallow waters while highlighting their approach which spans consulting, engineering, and direct asset participation will support Congo’s oil and gas expansion for long-term sustainability and profitability.
The President and CEO of Unite Oil and Gas, Yachtze Luchin, says he sees phenomenal opportunities for investment in Congo’s energy sector. In a chat with CNBC Africa’s Kenneth Igbomor at the inaugural Congo Energy and Investment Forum, he notes the company’s interest are in onshore as well as shallow waters while highlighting their approach which spans consulting, engineering, and direct asset participation will support Congo’s oil and gas expansion for long-term sustainability and profitability. Yes, no, phenomenal. I see phenomenal opportunities here in Congo because of three reasons which align with who we are as a company. Essentially, we came here approximately a year ago. We signed a contract on March 29th with SMPC. We certainly give tribute to Mr. Raul Ominga for bringing us and welcoming us into the country. We have a consulting division which obviously is the brain trust of our company. We provide geoscientists and engineers to help support our clients achieve their basically petroleum goals, whether it be gas and or oil, we have expertise in both sides of the equation. That's one thing that we offer. Secondly, we have a services division and that services division is responsible for EPC, engineering, procurement, and construction of wells, facilities, as well as pipelines, obviously taking care of the development space. And then last but not least, it's our development and production division and that is where we will directly participate in the journey, if not goals, that the country currently have because we will acquire an equity interest in assets that are currently undeveloped. And so that is how we will contribute. Our keen interest is in onshore as well as shallow water. Yeah, because when you look at Africa, there's always that perception of risk. And I can imagine from your experience, talk about that, especially for would-be investors looking to invest here in Congo. Yes. When I think about perception, if not perspective, I always go back to this saying, if you change the way you look at things, the things you look at change. And so when I look at the Congo and I look at this broad spectrum of opportunity and the richness of hydrocarbon resources, and certainly I can say from my own experience being here on the ground, the risk as far as above ground is comparable to other areas that we have already invested historically. And then secondly, I've enjoyed thoroughly working with the passionate and intellectual capable people of Congo. So of course, we all know where there's intellectual capacity, where there's stability, there's obviously an opportunity when resources are present. So I really view Congo as an ideal place, if you will, next to, of course, we know who Nigeria being one of the founding fathers of African production as well as Angola. But I think even in production today, Congo is in number three. So the future is bright. The opportunities are broad, whether it be in gas and oil. And so we're very happy to be here and we look forward to supporting all of the goals and initiatives the country has. And I need you to speak about your footprints, you know, help us appreciate it better because understanding the spread and what your expansion plans are looking at next. Yes. So our footprint, you mean Unite? Yes. I would say the footprint that we currently have is we entered into this market as the technical partner of SMPC. So let's elaborate a bit on what that actually means. What that means is that for the assets that SMPC owns 100 percent of, they had a desire to develop them themselves. And so they engaged us to come in to bolster their technical capacity. So we showed up as their technical partner. We're integrated into their professional team. And so together now we're jointly planning and ultimately crafting the development scheme for three fields, which soon to be advanced to five fields that we will be overseeing for SMPC. So that's the footprint we have. That was our entry point to ultimately bolster the technical strength. Right. By working together a bit of collaboration with SMPC. And then we pivot off of that and we created another entity called Bemoco Oil and Gas, which Bemoco, of course, in Lingala means to Unite. So Unite, we join forces with a company out of Brazzaville to start the production on of what we want to pursue from an asset perspective. And both areas will obviously have a major footprint going forward to the company's goals, country's goals. Excuse me. All right. Quite a lot has been said here today already. We listened to the minister. We listened to some of the other players who have been here for quite a bit. But for you, what is the biggest takeaway from the conversations here so far? The biggest takeaway for me is that, yes, Congo has had serious success historically. Coming online in 1957. But it's time for new goals, a new definition of excellence as we pivot going forward off of 270. And I love the idea that we're going to be diverse. What do I mean? The gas master plan. So now there's a limitation being placed on how much can be flared with the obviously goal, the obvious goal, excuse me, being the gas master plan that that those gas molecules could either provide electricity or be monetized. And then, of course, a 43 percent annual growth rate on average is what we're looking at as we pivot off of 270,000 barrels a day into 500,000 barrels a day by 2027. Very aggressive initiative. Last but not least, in order to achieve all of this, it's going to take investors. It's going to take partners to bolster their strength. And obviously, we are the result of the leaders of this country in the oil and gas space saying, look, we're ready to bolster our strength and bring in necessary partnerships to achieve our goals. So I see them doing that more. And it's a plethora of opportunity because the goals have already been identified and we must achieve. And that was the president, chief executive officer of Unite Oil and Gas, Yossi Lachin speaking there.
Theme: Investment Opportunities in Congo's Energy Sector
Unite Oil & Gas, under the leadership of President and CEO Yachtze Luchin, is optimistic about the vast investment opportunities in Congo's energy sector. In an exclusive interview with CNBC Africa at the inaugural Congo Energy and Investment Forum, Luchin outlined the company's strategic approach and commitment to supporting the country's oil and gas expansion for long-term sustainability and profitability. Luchin highlighted the three key pillars of Unite Oil & Gas' operations, which include a consulting division providing expert geoscientists and engineers, a services division focused on engineering, procurement, and construction, and a development and production division that directly participates in asset acquisition and development. The company's primary focus is on onshore and shallow water projects. One of the critical points emphasized by Luchin is the favorable investment climate in Congo, citing the country's abundant hydrocarbon resources and the presence of skilled professionals. He dismissed the perception of high risk in the region, noting that Congo offers stability and intellectual capacity, making it an ideal investment destination. Unite Oil & Gas has established a strong presence in the market through partnerships with local entities, such as the technical collaboration with SMPC and the formation of Bemoco Oil and Gas. These collaborations have enabled the company to enhance its technical capabilities and play a significant role in developing key oil and gas fields. Looking ahead, Luchin reiterated the company's commitment to supporting Congo's energy goals, including the implementation of a gas master plan to reduce flaring and increase gas utilization for electricity generation and monetization. He expressed confidence in Congo's ambitious target of reaching 500,000 barrels per day by 2027 and emphasized the importance of attracting investment and partnerships to achieve these milestones. In conclusion, Luchin emphasized the need for collaboration and investment in Congo's energy sector, highlighting the country's potential for growth and development. With a clear vision and strategic approach, Unite Oil & Gas is poised to capitalize on the abundant opportunities in the region and contribute to the long-term energy sustainability of Congo.
"The biggest takeaway for me is that, yes, Congo has had serious success historically. Coming online in 1957. But it's time for new goals, a new definition of excellence as we pivot going forward off of 270."
Unite Oil & Gas, Congo, energy sector, investment opportunities, oil and gas, sustainability, profitability