Congo’s $23bn deal with China’s Wing Wah raises concerns

The Democratic Republic of the Congo recently signed a hydrocarbon deal worth $23 billion with Wing Wah, a Chinese oil and gas company, for the integrated development of the Banga Kayo, Holmoni, and Cayo permits, but experts have flagged concerns over potential fossil fuel dependence and market monopolisation.

The Central African country aims to increase its national oil output to 200,000 barrels per day (bpd) by 2030.

Last year, the Republic of Congo made a major advance in exploiting its hydrocarbon reserves by signing a production sharing contract (PSC) with Wing Wah Oil Company of China, related to the Banga Kayo block.

According to an official statement, the latest agreement was signed by Bruno Jean-Richard Itoua, the Minister of Hydrocarbons of Congo, Jean-Jacques Bouya, Minister of State of Congo, and Xiao Lianping, President General of Wing Wah, in August.

Through the agreement, Congo aims to increase cumulative production across the three permits to exceed 1.3 billion barrels by 2050. This deal is vital to the country’s broader economic and financial strategy.

The project includes an in-built gas monetisation provision, whereby it is planned to expand LNG, LPG, butane, and propane production capacity in multiple phases to cater to both local and export requirements.

It also involves other development, including scalable gas treatment facilities, on-site power generation, and water management systems oriented towards efficiency and community well-being.

Wing Wah has already gained a huge presence in Congo following development of the Banga Kayo field. This onshore license now has less than 237,250 drilled wells and generates about 45’000 bpd with a potential of between around 50’000 and 80’000 bpd.

Congo is strategically positioning itself to attract investors through aggressive development of oil and gas resources. The country’s development of a Gas Master Plan and a new Gas Code have heightened focus on natural gas production.

The agreement for the monetisation of gas and the phased expansion of LNG, LPG, butane, and propane capacity to improve Congo’s exports and local supply could turn the country into a regional gas hub from the Banga Kayo, Holmoni, and Cayo blocks.

However, experts noted that a favourable operational environment, fair and transparent fiscal policies and capital flow from investors is required to make this happen.

Fossil fuel dependence

Katlong Alex, an energy sustainability analyst at the African Energy Council, told Gas Outlook that Congo is positioning gas as a transitional fuel, arguing that it’s cleaner than oil and essential for industrialisation. However, he said critics argue that doubling down on fossil infrastructure could lock Congo into a carbon-intensive path, especially if gas exports become the dominant focus.

Alex further said that Congo’s gas development ambitions centred on monetising LNG, LPG, butane, and propane. Plans are framed as a dual-purpose strategy to boost exports, and at the same time improve domestic energy access. However, he said, beneath the optimism lie several structural and governance challenges that could undermine long-term benefits.

“Although the deal includes scalable infrastructure for local use, there’s a risk that export markets will take precedence, especially given China’s strategic interest in securing energy supplies. The promise of excess power and treated water for communities is encouraging, but monitoring mechanisms are needed to ensure these benefits are delivered consistently.

“While the deal promises community benefits like electricity and water access, execution risks remain high. Congo’s national oil company (SNPC) and state refinery CORAF have long faced criticism for inefficiency and opaque governance. Without stronger auditing and public oversight, there’s a real risk that revenues and infrastructure gains may not trickle down to citizens,” he added.

Alex also raised concerns about Chinese companies monopolising energy sectors and their ethical track record in other regions. He said that in Africa, China’s dominance in mining and energy has raised fears of resource capture, where local governments lose control over strategic assets due to opaque contracts and debt dependencies.

“In Congo, Wing Wah holds an 85% stake in the Banga Kayo block, with the national oil company SNPC holding just 15%. This imbalance could limit Congo’s leverage in decision-making and revenue sharing. If not carefully managed, the deal risks becoming another example of economic overreach, where foreign interests dominate strategic sectors under the guise of development. 

“While Chinese investment brings much-needed capital and infrastructure, Congo must ensure strong regulatory oversight, transparent contracts, and community safeguards to avoid repeating the mistakes seen in other regions. The gas strategy should empower Congolese institutions — not sideline them,” he stressed.

Balancing export ambitions

Etulan Adu, a production engineer at Italian oil major Eni, told Gas Outlook that balancing the ambitions for gas exports with the need for local access is crucial, necessitating the implementation of strategies that allocate a significant portion of gas production for local consumption.

He said this involves creating domestic supply commitments to reserve a specific percentage of output for the local market and investing in essential infrastructure, such as pipelines and distribution networks, to enable efficient gas delivery to both urban and rural areas.

“Establishing a clear regulatory framework will prioritise local consumption while incentivising sector investment. To effectively achieve this balance, a system must be designed that addresses domestic energy demands and simultaneously attracts investments for gas exports. Emphasising local gas use enhances energy security and fosters economic stability for communities.

“Ultimately, a concerted effort among governments, industry stakeholders, and local communities can cultivate sustainable energy practices, ensuring both export objectives and domestic accessibility are met, thereby providing local populations with adequate energy resources. This approach mirrors Nigeria’s LNG LPG domestication scheme, which commits to supplying its entire LPG output to the Nigerian market,” he emphasised.

Climate and health risks

Adu also noted that implementing effective gas treatment methods is crucial for enhancing both environmental sustainability and community well-being. He said this includes the adoption of strict regulations and advanced technologies that minimise harmful emissions and prevent local ecosystem pollution.

“Community engagement is essential, fostering trust and collaboration between gas producers and local residents. Open communication channels allow the sharing of information about gas treatment practices and their potential health and environmental impacts.

“Involving community members in decision-making regarding gas projects fosters ownership and responsibility. A balanced approach that combines effective gas treatment with active community participation can lead to better public health outcomes and a more sustainable energy future,” he added.

Adu also noted that gas development needs to align with economic and climate objectives to address climate change issues and encourage sustainable growth. He said this alignment requires that gas production be integrated into broader energy and economic frameworks that prioritise renewable energy sources and low-carbon technology.

“The government of Congo and investors including policymakers should encourage the natural gas industry to adopt more environmentally friendly practices,” he said.

On the climate front, Adu said Congo’s gas strategy embraces several important environmental goals despite the increase in fossil fuel production. He said a major focus is on reducing gas flaring, a practice that wastes valuable resources and generates significant greenhouse gas emissions.

“By committing to achieving Zero Routine Flaring by 2030, Congo can capture associated gas for domestic use or export, contributing to a more sustainable energy sector,” he said.

Alex also added that Congo’s gas development strategy aligns with its broader economic and climate goals and could serve as a model for other resource-rich African nations navigating the energy transition.

He said by investing in scalable infrastructure, prioritising domestic access, and integrating climate-conscious practices like reduced flaring, Congo is showing that it’s possible to pursue economic growth while laying the groundwork for cleaner energy systems.

(Writing by Samuel Ajala; editing by Sophie Davies)