Title: The joint exploitation of oil between the Democratic Republic of Congo and Angola finally materializes
Introduction :
The Democratic Republic of the Congo and Angola have finally reached an oil production sharing agreement in the common maritime area. After many years of discussions, the two countries have found common ground and will sign the contract on July 13, 2023. This breakthrough opens new perspectives for the DRC, which wishes to diversify its economy and increase its fiscal space. In this article, we will examine the details of this historic agreement and its implications for both countries.
Development:
Since 2007, the Democratic Republic of Congo and Angola have engaged in negotiations regarding the exploitation of oil in the common maritime area. These discussions finally led to the signing of a production sharing agreement, which will allow the two countries to collaborate in the prospecting, exploration, evaluation, development and production of liquid and gaseous hydrocarbons.
The production sharing contract guarantees an equitable distribution of revenues, with an equal share of 50% for each country. This collaboration will enable the DRC to benefit from a significant financial contribution, thus improving its budgetary space. According to estimates by Congolese experts, the economic loss due to the exclusive exploitation of block 14 by Angola amounts to 32.8 billion US dollars, a considerable sum for a country in search of development.
For the DRC, this agreement represents an opportunity for economic diversification. Currently dependent on the mining sector, the country wishes to invest in other industries, including oil exploitation. President Félix Antoine Tshisekedi has stressed the importance of becoming an oil-producing country in Africa, and this agreement marks a significant step towards achieving this goal.
The signing of the production sharing contract scheduled for July 13, 2023 in Kinshasa will mark a crucial step in the collaboration between the DRC and Angola. This will also pave the way for the finalization of the agreement on the governance and management of the area of common interest. If all goes as planned, the DRC will finally be able to exploit its oil resources jointly with Angola, which will strengthen trade and cooperation between the two countries.
Conclusion:
The oil production sharing agreement between the Democratic Republic of Congo and Angola is a major step forward for both countries. It opens up new economic opportunities for the DRC, which will be able to diversify its economy and increase its income. It also demonstrates the desire for cooperation between the two neighboring nations and strengthens bilateral relations.. This contract marks an important milestone in the history of the exploitation of natural resources in Africa and shows that through dialogue and collaboration, countries can find mutually beneficial solutions.