The Chief Financial Officer at Afentra, Anastasia Deulina, says scaling oil production in Congo requires significant investment and time. Speaking with CNBC Africa at the Inaugural Congo Energy & Investment Forum, she highlights lessons learnt from Afentra’s operations in Angola and the possibility of replicating similar strategies in Congo leveraging partnerships.
The Chief Financial Officer at Afentra, Anastasia Deulina, says scaling oil production in Congo requires significant investment and time. Speaking with CNBC Africa at the Inaugural Congo Energy & Investment Forum, she highlights lessons learnt from Afentra’s operations in Angola and the possibility of replicating similar strategies in Congo leveraging partnerships. Take a listen. I really enjoyed the sessions yesterday. I think the ambition of 500,000 barrels is a great ambition and I'm glad that the government is very focused on the goal. We come from our experience in Angola, which is right next door. I think there was a lot of discussion yesterday around how some of the learnings from Angola can be replicated here in Congo. The journey of Angola in the new era only started in 2017-2018 with the reform that the government has done around Sonangol. We as Afentra is a direct beneficiary of what Angola has accomplished. We entered Angola only in 2022. We are now a very important independent producer in Angola. We are producing close to 7,000 barrels net to us in 2024. We continue to grow production and we think that something similar can be replicated here in Congo. Not only we have production, we also entered some onshore licenses in combination with Sonangol, but also with the local players. Again, there was a discussion yesterday around the government's ambition around bringing local capacity, building technical capacity, building financial capacity. We as Afentra are looking to be that bridge, a company that can bring the technical capability, financial capability, and can also work collaboratively both with CNPC and also with the local players. That's what we look for. We look for an opportunity. We look for an opportunity to work with the local players and the government and build a business and ultimately for the benefit of the country and also for the benefit of our shareholders. The endgame for the government here is scale. They're looking to scale up production here. For you, what's that one simple obstacle you've taken could ramp up scale here? You have to find oil and you have to develop oil and in between you have to invest a lot of money. It's great to have an ambition, but also it needs to be put in context of the amount of capital it will take to get from 270,000 barrels to 500,000 barrels. Total is a big player. Again, we heard yesterday about their ambition and their investment plans. Ultimately, it's very important to have players like Total, but also what we have seen across West Africa, it's a consistent theme, is some of these players are now leaving Chevron left Congo and focused on other jurisdictions. What we can do as an independent player is basically take over from the majors and continue to invest in countries. Hopefully, Congo will be one of them. To answer your question, it's great to get to 500,000 barrels. It cannot happen overnight. These projects take time and they take money. You talked about your play in Angola and also alluded to some of your work across West Africa. I'm curious to know what your Pan-African strategy is here in Africa. We have been in Angola, as I said, so that was our jurisdiction of first entry. We look to work in other jurisdictions in West Africa. We are a mature operator, so we look at assets that have been produced, neglected, and redevelopment plan is what's required. There is a number of jurisdictions in West Africa, of which Congo is one. There are examples in Gabon where you can probably replicate some of that strategy. There is probably some other jurisdictions, but the core for us is West Africa. We're a Pan-African player, but West Africa is our focus. You also alluded to your partnership with Sonangol here as well. I'm trying to look at how you're looking at that as a strategy as well, looking at leveraging of partnerships to drive your ambitions here. In Angola, Sonangol is our operator. The asset where we are present, Block 305, is an asset that's operated by Sonangol. We work very collaboratively with Sonangol. We have secondees that are within the Sonangol's organization. We have our technical team that is dedicated to the project. Again, they work with Sonangol in-country, but also we do a lot of work back in London. Then we contribute to the discussions. We contribute to JV process. The gross production rate at the asset was around 17,000 barrels when we entered. We're now producing 21,000-22,000 barrels. Some days we produce 23,000-24,000 barrels a day. That's through just very insignificant projects. We have not done any drilling yet. All we've done are light-weld interventions. We're focused on power restoration. We're focused on water re-injection. We bring our international expertise to the table. We work with Sonangol. Again, this is something that we think we can also replicate in places like Congo. CNPC is an established player. We would love to work with them. We would love to cooperate. We would love to bring our expertise and also help them as a partner because ultimately it's their asset. It's their ultimate future. For us, it's important to work together and not be isolated because we're not going to survive as an isolated company in Congo. We will work in partnerships. The government now has stated its ambitions here. Quite a lot was said yesterday in terms of what needs to move the needle here. For you, what has been the biggest takeaway? I think the gas is obviously a key here in Congo. For me personally, it was a very interesting experience yesterday to listen to what E&I has accomplished, again, the Total's plans and country. The story of gas is a fascinating story. The situation obviously in Europe is such that LNG will continue to drive a lot of the needs in Europe. LNG for Europe is going to stay. Congo is in a prime position to take advantage of those opportunities. E&I has demonstrated to us yesterday how we have only achieved production within one year since we've taken FID. That's amazing. This is something that hopefully can be replicated many times over.
Theme: Challenges and Opportunities in Scaling Oil Production in Congo
The Chief Financial Officer at Afentra, Anastasia Deulina, recently shared insights on the challenges and opportunities in scaling oil production in Congo during an interview with CNBC Africa at the Inaugural Congo Energy & Investment Forum. Deulina emphasized the need for substantial investment and time to achieve the ambitious goal of 500,000 barrels per day set by the government. Drawing on Afentra's experiences in Angola, she highlighted the potential for replicating successful strategies in Congo through strategic partnerships. Deulina underscored the importance of collaboration with local players and key stakeholders to build technical and financial capacity in the region. Deulina reflected on Afentra's journey in Angola, a neighboring country to Congo, which began in 2022. Despite entering the Angolan market relatively recently, Afentra has emerged as a significant independent producer with a production capacity of approximately 7,000 barrels per day in 2024. Leveraging partnerships with key industry players like Sonangol and local companies, Afentra aims to contribute to Congo's oil sector growth by sharing expertise and resources. Deulina emphasized the company's commitment to working in tandem with CNPC and other stakeholders to drive sustainable development and benefit both the country and its shareholders. Addressing the challenges of scaling up oil production, Deulina highlighted the need for substantial capital investment and a strategic approach to development. While acknowledging the contributions of major industry players like Total, she noted the increasing role of independent operators in sustaining growth and investment in emerging markets like West Africa. Deulina stressed the importance of continuity and long-term commitment to projects, emphasizing that significant production increases require both time and financial resources. In discussing Afentra's Pan-African strategy, Deulina outlined the company's focus on mature assets in West Africa, including neglected oil fields with potential for redevelopment. By adopting a collaborative approach with partners like Sonangol, Afentra seeks to replicate its successes across different regions, including Congo. Deulina highlighted the productive partnership with Sonangol in Angola, underscoring the importance of knowledge sharing, technical expertise, and collaborative decision-making in driving production growth. One key takeaway from the interview was the emphasis on gas production as a critical component of Congo's energy sector. Deulina highlighted the significant opportunities in the gas market, particularly in the context of increasing global demand for LNG. Pointing to the success stories of industry peers like E&I and Total, she expressed optimism about the potential for rapid production growth in Congo through efficient project execution and strategic resource management. In conclusion, Deulina's insights shed light on the complex dynamics of oil production in Congo and the essential role of partnerships, investment, and long-term vision in driving sustainable growth. As the country strives to achieve its production targets, collaboration between government, industry players, and independent operators like Afentra will be crucial in realizing the full potential of Congo's oil sector.
"It's great to have an ambition, but also it needs to be put in context of the amount of capital it will take to get from 270,000 barrels to 500,000 barrels."
Afentra, Anastasia Deulina, oil production, Congo Energy & Investment Forum, Angola, Congo, partnerships, CNPC, West Africa, Sonangol, gas production, LNG, E&I, Total