Congo+Petroleum

China Likely To Start Investments In Congo-Brazzaville’s Petroleum Sector In The Next Five Years Due To Presidential Economic Agreements Despite A Declining Trend Of Oil In The Past Few Years
China is likely to start investments in Congo-Brazzaville’s petroleum sector in the next five years due to presidential economic agreements despite a declining trend of oil in the past few years. Congo-Brazzaville has known oil reserves of 1.6 billion barrels and according to EIA estimates a slowdown in the oil fields is expected and as a result the government has future plans for deep water licensing rounds to attract foreign investment. To halt the slowdown, China has pledged assistance in the development of special economic zones.
 * Executive Summary: **

A ccording to the U.S. Energy Information Administration petroleum accounts for 80 percent of government revenue and 90 percent of total exports and that a vast majority of oil exploration activities and production comes from offshore oil fields. IHS Global Insight states there are proven oil reserves at 1.6 billion barrels in Congo-Brazzaville and that offshore oil exploration is significant to Congo's continued petroleum success. According to EIA estimates, overall production declined consecutively and they expect this trend to continue in 2013. Congo's maturing oil fields and a slowdown in field development have hindered Congo's overall petroleum capabilities. In 2011 Congo's hydrocarbon minister announced that the country's oil production decreased in 2011. As a result, the Congolese government is keen to develop offshore fields to supplement declining production from mature fields and is expected to hold a deep water licensing round in the future. In March 2013 Chinese President Xi Jinping and his Congolese counterpart Denis Sassou Nguesso agreed that China will assist with economic and social development and in exchange Chinese enterprises will participate in the construction of special economic zones. ====
 * Discussion: **



** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson