Democratic Republic of Congo plans to launch a licensing round this year for more than 20 onshore oil and gas blocks, the oil ministry said April 5. The round will be its first since adopting a new hydrocarbons code in 2015.
Congo, Africa’s leading copper miner, has pumped just 25,000 barrels of oil per day for years despite sitting on up to 5 billion barrels of reserves.
The hydrocarbons code was meant to revive the haphazardly regulated sector by imposing new transparency, such as requiring public tenders for exploration and exploitation permits.
Emmanuel Kayumba Banza-Mwana, a senior official in the oil ministry, told Reuters the government would open bids on blocks in the coastal basin along the Atlantic, the inland Cuvette Centrale and around Lake Tanganyika in the southeast.
The licensing round would still have to wait until President Felix Tshisekedi, who took office in January, names a new government in the coming months, he said, speaking by telephone.
Anglo-French oil and gas company Perenco is Congo’s only active producer. France’s Total also holds an exploration permit near the eastern border with Uganda.
Government efforts to ramp up oil exploration have met resistance from environmentalists, who have objected to exploration inside protected national parks.
In December, former President Joseph Kabila awarded an oil drilling license that overlaps with a wildlife-rich UNESCO world heritage site and forms part of the world's second largest rainforest.
IEA's Fatih Birol told Reuters that oil prices could not be expected to rise significantly under "normal conditions" although unexpected developments, such as rising instability in Iraq, could alter the situation.
Two major oil fields in southwest Libya began shutting down on Jan. 19 after forces loyal to Khalifa Haftar closed a pipeline, potentially cutting national output to a fraction of its normal level.
As long as tariffs on gas remain, traders will be reluctant to commit to deals.