The gas sector faces evolving challenges and opportunities, requiring strategic investments and fiscal reforms to stay competitive. CNBC Africa's Kenneth Igbomor spoke to Jevon Hilder, Senior Business Development Manager, TGS at the side-lines of the Congo Energy and Investment Forum.
The gas sector faces evolving challenges and opportunities, requiring strategic investments and fiscal reforms to stay competitive. CNBC Africa's Kenneth Igbomor spoke to Jevon Hilder, Senior Business Development Manager, TGS at the side-lines of the Congo Energy and Investment Forum.' It's been very positive actually, you know, on the whole well-organized. I think there's a lot of great messaging that's coming from the government in particular. I think they are looking to attract investment and looking to make changes, you know, that are necessary in order to stay competitive. So yeah, we look forward to hopefully what is a, you know, a license round announcement later today. Of course, yes, that's what we're looking forward to, the licensing round announcement here. And I'm trying to imagine for you, as someone who's been in this environment here, what has that process been like here and what are some areas you think you would like to see some improvement in terms of the licensing rounds for the marginal fields here? I think certainly speed of decision-making, you know, can be looked at. But I would say that's not necessarily a problem which is unique to Congo. And then following on from that, once you've made the decision to move ahead, please keep to a consistent and stable timeline. This is what investors crave. Yeah, because for will-be investors that are looking at this market here, definitely there's a lot of competition for capital across the continent here. I was looking at Nigeria, looking at Angola. But in terms of borrowing a leave for some of these countries that have done incredible work in how they manage the processes, like Angola, for example, what would you say then needs to happen here? Yeah, I think you're right to cite example. It's a super one. They've made great strides in terms of improving the attractiveness, particularly of their fiscal regime, making sure that investors, when they come, that they are able to make satisfactory returns on investment. A lot of that came out of a necessity to do that because of the oil price scenario. That's still valid. So I think Congo needs to learn that lesson and just try to be dynamic, try to move things quickly if possible, because this is not standing still. As you've already indicated, it's an extremely competitive market. A number of countries are launching license rounds this year. You need to move quickly and you need to have attractive terms. Because at the end of the day, quite a lot has been said here at this forum. I'm trying to imagine what has been that biggest takeaway for you. Biggest takeaway, I think just the desire of Congo to be a frontrunner on the African scene with what is already their preeminent position on the OPEC Council. But just that impetus really to stimulate investment in the country and move forward to what is undoubtedly still a highly prospective country. What change do you think will move the needle the largest or give the largest outcomes here? I think certainly looking at the fiscal terms, just maybe a benchmarking exercise, for example. One thing that specifically sticks in my mind is perhaps looking at recovery of exploration costs for companies and make that as close as possible to 100%. I know it's difficult, but it's not a great deal of risk to the state, but it just means that in the event of a discovery, which is obviously what everyone wants, those companies are able to recover as much of the exploration costs which they undertook in the first place.
Theme: Enhancing fiscal and licensing efficiency for Africa’s gas sector investment
The gas sector in the Republic of Congo is facing a pivotal moment, as evolving challenges and opportunities require strategic investments and fiscal reforms to remain competitive in the global market. In a recent interview with CNBC Africa, Jevon Hilder, Senior Business Development Manager at TGS, shared his insights on the future of the gas sector in Congo. The conversation took place at the Congo Energy and Investment Forum, where government officials and industry experts gathered to discuss ways to attract investment and drive growth in the energy sector. Hilder expressed optimism about the government's efforts to attract investment and implement necessary changes to enhance competitiveness. He highlighted the importance of a well-organized approach and the positive messaging coming from the government. One key aspect that Hilder and other industry players are eagerly anticipating is the upcoming licensing round announcement, which is expected to open up new opportunities for investors. When asked about areas for improvement in the licensing process for marginal fields, Hilder emphasized the need for speed in decision-making and consistency in timelines. He noted that investors are drawn to stability and predictability, and maintaining a steady timeline is crucial for building investor confidence. Drawing lessons from countries like Angola, which have successfully improved their fiscal regimes to attract investment, Hilder emphasized the importance of creating an attractive environment for investors. The interview also touched on the competitive landscape in Africa's energy sector, with countries like Nigeria and Angola vying for capital investments. Hilder underscored the need for Congo to adapt quickly to market dynamics and make the necessary changes to remain competitive. He stressed the significance of moving swiftly and offering attractive terms to investors, especially in a market with multiple countries launching licensing rounds. Reflecting on the biggest takeaway from the Congo Energy and Investment Forum, Hilder highlighted the country's strong desire to be a frontrunner in the African energy landscape. He commended Congo's ambition to stimulate investment and leverage its vast energy potential. In terms of driving significant outcomes in the sector, Hilder pointed to the importance of revisiting fiscal terms and exploring opportunities to optimize exploration cost recovery for companies. In conclusion, Hilder's insights shed light on the strategic initiatives needed to enhance fiscal efficiency and attract investment in Congo's gas sector. As the country strives to position itself as a key player in the global energy market, implementing reforms and creating an investor-friendly environment will be crucial for unlocking the full potential of its energy resources.
"Reflecting on the biggest takeaway from the Congo Energy and Investment Forum, Hilder highlighted the country's strong desire to be a frontrunner in the African energy landscape."
Congo, Gas Sector, Fiscal Efficiency, Investment, Energy Sector, Licensing Rounds