Congo is experiencing rising oil production due to investments in the oil sector. Oil and Gas Journal (OGJ), reports proven oil reserve estimates for Congo in 2007 of 1.6 billion barrels, up from 1.5 billion barrels in 2006. The majority of reserves are located offshore, where approximately 80 percent of the oil is produced. In 2006, Congo was the fifth largest crude oil producer in Sub-Saharan Africa following Nigeria, Angola, Sudan, and Equatorial Guinea (see graph below).

Congo's national oil company, the Société Nationale des Pétroles du Congo (SNPC), regulates all oil production and exploration activities in the country. SNPC develops production sharing agreements (PSAs) with each foreign company that operates in Congo to ensure a constant minimum flow of revenue to the government. Under the PSA contracts, foreign companies carry out exploration and development during an agreed upon period of time, while financing all investment costs which are recovered when production begins. The PSAs also offer tax breaks and a royalty system to operating companies. Because all major operators in Congo have signed PSAs for their respective field developments, approximately one-third of the oil produced goes directly to the government and is sold by SNPC on behalf of the state. Primary foreign operators in Congo include Total (France), Eni (Italy), and Perenco (United Kingdom).

Congo’s oil production rebounded in 2006. Due largely to maturing fields and delays in bringing new projects online, Congo’s oil production gradually declined from 280,000 barrels per day (bbl/d) in 2000 to 227,000 bbl/d in 2005. However, in 2006, Congo produced an average of 240,000 bbl/d, and output is expected to continue rising as additional fields come online. According to IHS Energy, as of February 2007, Total was the leading oil producer in Congo, accounting for approximately 47 percent of the country’s total oil production, while Eni produced 22 percent. Additional smaller oil producers in Congo include Perenco, Congorep (Perenco-SNPC consortium), and Likouala S.A. (private domestic company).

In 2006, Congo consumed 6,000 bbl/d and exported approximately 234,000 bbl/d of crude oil, with the majority destined for Asian markets. According to FACTS Global Energy, Congo shipped 108,000 bbl/d, or 46 percent of total crude exports, to China in 2006. The United States imported 27,000 bbl/d of crude oil from Congo in 2006. Congo exports its crude oil through the Djeno Terminal, located in the country’s main port city, Pointe-Noire. Congolese crude oil types are typically medium and sweet, with API gravities ranging from 22° - 33°. The country’s main export blend, Djeno, has an API gravity of 27.4° and a sulfur content of 0.27 percent.

Overall, oil production in Congo is expected to see continued growth over the next year, averaging 255,000 bbl/d in 2007. Total, as the leading oil producer and foreign investor in Congo, plans to bring online the offshore Moho-Bilondo field in early 2008. Total estimates that Moho-Bilondo will produce 90,000 bbl/d, which will increase the company’s current estimated production of 124,000 bb/d to approximately 214,000 bbl/d. In 2005, Total received government approval to begin developing the field, which includes constructing 12 subsea wells. The field is located in the Haute Mer permit area and contains proven and probable reserves of 200 million barrels. Oil from the field will be piped to the Djeno Terminal via the Likouala platform. Total operates the project with a 53.5 percent interest and is joined with partners Chevron (31.5 percent) and SNPC (15 percent).

In January 2007, France-based Maurel and Prom initiated a water injection scheme on the onshore M'Boundi field to increase production capacity. If the water injection system is successful it could increase oil production at the field by 18 percent a year between 2007 - 2010. As of December 2006, M’Boundi was producing 54,000 bbl/d from 58 wells. Current output capacity is limited to 62,000 bbl/d, due to transportation and processing capacity, but expansion of the production facilities to 90,000 bbl/d is in progress. In February 2007, Eni acquired Maurel and Prom’s 48.6 percent interest in M’Boundi. Additional partners in the field include Burren Energy (37 percent) and Energy Africa (11 percent).

In March 2003, Angola and Congo created the Zone d'Interet Commun (ZIC, Common Interest Zone). The ZIC joint development area, based in Brazzaville, includes portions of Block 14 (Angola), operated by Chevron and the Haute Mer Block (Congo), operated by Total. Congo and Angola will share revenues equally from all oil production occurring in the ZIC. In December 2004, Chevron announced a "significant discovery" in the joint development zone, with the Lianzi-1 exploration well encountering two oil bearing reservoirs, one flowing at a rate of more than 5,000 bbl/d. As of April 2007, Chevron and its partners were working on a development plan for the Lianzi-1 discovery. Commercial oil production at the ZIC is not expected before 2012.

Although the nameplate capacity of Congo's sole refinery, Congolaise de Raffinage (CORAF), is 21,000 bbl/d, it often operates at less than half capacity, with prolonged periods of inactivity. The Congolese government has tried to privatize CORAF, with the hope of increasing utilization at the refinery. However, private investors have shown little interest in the facility. The government has since been working to expand and modernize the CORAF in an effort to make it more attractive to investors.

For over 25 years, state-owned Hydro-Congo held a monopoly over the sale and distribution of oil products in Congo. In 2002, Hydro-Congo, Chevron, Total and Tacoma/Puma-Energy (UK) formed the Société Commune de Logistique Petroliere (SCLOG) to transport oil products throughout the country. Approximately 100 service and filling stations are located throughout the country, and they provide bottled liquefied petroleum gas (LPG), petrol, kerosene and automotive diesel.