Oil production sharing contract between the DRC and Angola in the common maritime zone, signature scheduled for July 13, 2023 in Kinshasa
The Democratic Republic of Congo (DRC) and Angola have finally reached an agreement to sign an oil production sharing contract in the common maritime zone that separates them. After 16 years of discussions, the two countries have agreed on the guiding principles of this contract, which will be signed on July 13, 2023 in Kinshasa.
This agreement, which relates to the prospecting, exploration, evaluation, development and production of liquid and gaseous hydrocarbons in the maritime zone of common interest, provides for an equitable distribution of income between the two countries. Each country will thus receive 50% of the concessionaire’s income.
This progress marks an essential step in the implementation of this production sharing contract. It also paves the way for the finalization of the agreement on the governance and management of the area of common interest, which should be signed on the same occasion.
For the DRC, this joint exploitation of the oil present in the common maritime zone is a major opportunity. Indeed, the country will be able to diversify its economy, which depends largely on the mining sector, and thus improve its fiscal space. According to a Congolese expert, the DRC is currently losing nearly 32.8 billion US dollars in GDP due to the exclusive exploitation of the rich block 14 by Angola.
The President of the Republic, Félix Antoine Tshisekedi, had expressed his desire to see the DRC become an oil-producing country in Africa. This signing of the oil production sharing contract with Angola therefore represents a significant step forward in achieving this objective.
By placing 27 oil blocks and 3 gas blocks on the market, the DRC is seeking to attract operators capable of developing these oil deposits. This openness to oil exploitation could therefore contribute to the country’s economy and its development.
In conclusion, the imminent signing of the oil production sharing contract between the DRC and Angola in the common maritime area is a major step forward for the two countries. This will allow the DRC to diversify its economy and improve its fiscal space, while Angola will also benefit from the income from this joint exploitation