Oil production sharing contract in the Democratic Republic of Congo and Angola, signed on July 13, 2023.
The Democratic Republic of Congo and Angola have finally reached an agreement to sign an oil production sharing contract in the common maritime zone, after 16 years of discussions. This agreement, which will be signed on July 13 in Kinshasa, marks a significant step towards the realization of the Agreement on the export and production of hydrocarbons in the Zone of Common Interest (ZIC) between the two countries.
According to the Congolese Minister of Hydrocarbons, Patrick Muyaya, the work between the two parties has made it possible to harmonize the guiding principles of the Production Sharing Contract (PSC), which will be signed by the concessionary entity represented by the DRC and Angola. , as well as by the entity of the Group of entrepreneurs represented by the operator Chevron. This contract will allow prospecting, exploration, evaluation, development and production of liquid and gaseous hydrocarbons in the Maritime Zone of Common Interest (ZIC).
A fair distribution of income is planned, with a 50% share for each country. This step of harmonizing the CPP paves the way for the finalization of the Agreement on the governance and management of the ZIC, which will also be signed during the same ceremony in Kinshasa.
This progress is of capital importance for the DRC, which wishes to diversify its economy dependent on the mining sector. The joint exploitation of the oil resources of the common maritime zone will thus enable the DRC to increase its budgetary space and improve its economic situation.
The President of the Republic, Félix Antoine Tshisekedi, has also spoken publicly on this issue, saying that the DRC should take its place among the oil-producing countries in Africa. To do this, the Congolese government has already put 27 oil blocks and 3 gas blocks on the market, in order to find operators interested in developing these oil deposits.
In conclusion, the signing of the oil production sharing contract between the DRC and Angola marks a crucial step in the diversification of the Congolese economy. This partnership will enable the DRC to jointly exploit its oil resources and improve its economic situation. This is a major step forward for the country, which seeks to reduce its dependence on the mining sector and benefit from its natural resources.