TotalEnergies’ Strategic Expansion in Congo’s Oil Sector: A High-Impact Offshore Investment in Sub-Saharan Africa

TotalEnergies’ recent acquisition of the Nzombo offshore permit in the Republic of the Congo represents a bold and calculated move in the high-stakes arena of sub-Saharan Africa’s oil sector. This 1,000-square-kilometer permit, located 100 kilometers off the coast of Pointe-Noire, is strategically adjacent to TotalEnergies’ existing Moho production facilities, enabling cost efficiencies through shared infrastructure and operational synergies [1]. With a 50% stake in the project, TotalEnergies is partnering with QatarEnergy (35%) and the Société Nationale des Pétroles du Congo (SNPC, 15%) to mitigate financial and technical risks while aligning with Congo’s ambitious goal of doubling oil production to 500,000 barrels per day by 2030 [2].

Geological and Strategic Potential

The Nzombo permit lies in a deepwater basin with water depths ranging from 1,000 to 1,500 meters, a geological profile akin to successful offshore projects in Ghana and Nigeria. For instance, Ghana’s Jubilee and TEN fields, discovered in 2007 and 2010 respectively, have become pillars of the country’s oil production, contributing over 160,000 barrels per day [3]. Similarly, Nigeria’s deepwater Agbami and Egina fields, operated by Shell and Chevron, highlight the continent’s untapped potential in offshore reserves [4]. While specific seismic data on Nzombo remains sparse, the permit’s location in a sedimentary basin with analogous geological characteristics to these high-impact projects suggests a compelling case for exploration.

ESG and Regulatory Considerations

The regulatory and environmental landscape for offshore projects in 2025 is increasingly complex. In Europe, the European Banking Authority (EBA) and European Central Bank (ECB) are tightening ESG risk management guidelines, emphasizing climate-related and environmental accountability [5]. TotalEnergies’ commitment to zero routine flaring and water reinjection practices in its Congo operations aligns with these evolving standards, mitigating long-term regulatory risks [6]. Meanwhile, in the U.S., California’s SB 253 and SB 261 are setting de facto national benchmarks for climate disclosures, a trend that could influence international investors’ scrutiny of projects like Nzombo [7].

Congo’s own regulatory framework, while less stringent than European or U.S. standards, is evolving. The country’s 2022 Guidelines for Environmental Management in Upstream Oil and Gas Operations reflect a growing emphasis on environmental accountability, a critical factor for TotalEnergies’ reputation and stakeholder trust [8].

Investment Thesis

The Nzombo permit is a high-impact catalyst for TotalEnergies’ long-term growth. With a $500 million investment in 2025, the project complements the company’s $600 million commitment to the Moho Nord field, which currently produces 140,000 barrels per day and is projected to increase by 40,000 barrels per day [9]. By leveraging existing infrastructure and regional partnerships, TotalEnergies is optimizing capital expenditures while reducing exploration risks—a hallmark of disciplined energy investing.

Moreover, the project aligns with broader trends in African oil and gas. The continent is projected to attract $54 billion in hydrocarbon investments by 2030, driven by deepwater discoveries and improved regulatory frameworks [10]. For investors, Nzombo represents a strategic bet on a region where geopolitical stability, resource potential, and corporate expertise intersect.

Conclusion

TotalEnergies’ Nzombo offshore permit is more than a geological play—it’s a calculated move to capitalize on sub-Saharan Africa’s energy renaissance. By combining deepwater expertise, ESG-conscious practices, and strategic partnerships, the company is positioning itself to deliver robust returns while supporting Congo’s national energy ambitions. For investors, this is a high-conviction opportunity in a sector where patience and technical rigor are rewarded.

Source:
[1] TotalEnergies' Strategic Expansion in Congo's Offshore Oil [https://www.ainvest.com/news/totalenergies-strategic-expansion-congo-offshore-oil-potential-assessing-nzombo-permit-catalyst-term-growth-2509/]
[2] Republic of the Congo: TotalEnergies is Awarded a New Exploration Permit [https://www.businesswire.com/news/home/20250828550088/en/Republic-of-the-Congo-TotalEnergies-is-Awarded-a-New-Exploration-Permit]
[3] Nigeria and Ghana: Oil Production Insights [https://chenjiazizhong.com/2025/07/24/nigeria-and-ghana-oil-production-insights/]
[4] Six oil projects to unlock 800000 bpd for Nigeria [https://businessday.ng/pro/article/six-oil-projects-to-unlock-800000-bpd-for-nigeria/]
[5] ESG risks in 2025: Responding to regulatory and supervisory pressure [https://kpmg.com/xx/en/our-insights/ecb-office/esg-risks-in-2025-responding-to-regulatory-and-supervisory-pressure.html]
[6] Environmental and Social Impact Assessments [https://totalenergies.com/info/environnemental-and-social-impact-assessments]
[7] Regulatory Shifts in ESG: What Comes Next for Companies? [https://corpgov.law.harvard.edu/2025/04/12/regulatory-shifts-in-esg-what-comes-next-for-companies/]
[8] Guidelines for Environmental Management in Upstream Oil and Gas Operations. Accra: Government of Ghana [https://www.researchgate.net/publication/392840463_Mitigating_Environmental_Impact_of_Hydrocarbon_Exploration_Cross-Disciplinary_Approaches_to_Spill_Prevention_Remediation_and_Associated_Gas_Management_in_Offshore_Operations_in_Ghana_and_the_Niger_Del]
[9] TotalEnergies to Invest $500M in Congo as IOCs Deepen African Commitments [https://aecweek.com/totalenergies-to-invest-500m-in-congo-as-iocs-deepen-african-commitments/]
[10] Africa's oil and gas investment to hit $43 billion in 2025 [https://www.oilandgas360.com/africas-oil-and-gas-investment-to-hit-43-billion-in-2025/]