By Felicity Bradstock
Nov 23, 2023
Synopsis
Massive oil and gas reserves in the DRC attract global interest. Government sees development as vital for economic growth but faces opposition from environmentalists and local communities fearing ecological damage in sensitive areas. Recent discoveries make DRC second in crude oil reserves in Central and Southern Africa. Oil majors eye untapped opportunities, but concerns arise about environmental and social impacts. Current oil projects involve Perenco, Total, and SONAHYDROC. Widespread worry about potential harm to gorilla habitats and rainforests if drilling proceeds.
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- The DRC has massive oil and gas reserves, attracting interest from international companies for exploration and development.
- Environmentalists and local communities oppose oil exploration due to potential ecological damage, particularly in sensitive areas like the Congo Basin and Virunga National Park.
- The DRC government sees oil and gas development as crucial for economic growth but faces pressure to balance this with environmental protection and community concerns.
Recent oil and gas discoveries in the Democratic Republic of Congo (DRC) mean that the country has the second largest crude oil reserves in Central and Southern Africa, after Angola. Several international oil majors have been eyeing Africa for the development of new operations in a largely untapped region. New oil and gas projects in the DRC could provide energy companies with massive new reserves and allow them to develop lower-carbon operations. However, there is widespread opposition in the country, as environmentalists worry about the ecological impact of drilling, and residents are concerned about the effect on the community, as well as the potential for corruption.
The DRC’s proven oil reserves of 180 million barrels are mainly located in the four major lakes bordering Tanzania, Burundi, Rwanda, and Uganda. Its reserves are thought to include a total of around 30 billion cubic metres of methane and natural gas. In Lake Kivu, bordering Rwanda and Burundi, there are also almost 60 billion cubic metres of dissolved methane in the waters. The DRC currently exports all its crude production and imports all its petroleum products, something that could change to boost the country’s energy security if its oil and gas industry is developed further.
Three major oil companies currently operate oil projects in the region, the Anglo-French firm Perenco, French oil major Total, and state-owned SONAHYDROC. There has been great optimism around oil discoveries in the region in recent years, with estimates for petroleum reserves as high as three billion barrels. Therefore, further exploration could prove fruitful for companies looking to break into Africa.
However, many are worried about the potential environmental and social impacts of developing the DRC’s oil reserves. Earlier this year, the New York investment firm EQX Biome, a biodiversity fintech company, made a bid of $400 million in an auction for oil concessions in the Congo basin rainforest and Virunga National Park with the idea of converting them into conservation projects. It signalled its interest in 27 oil exploration blocks put up for auction in July last year to the DRC government. The region includes a critically endangered gorilla habitat, as well as parts of the world’s largest tropical peatlands, and some of the world’s second-largest rainforest in the Congo basin. Environmentalists worldwide have warned of irreversible environmental harm should drilling go ahead in the region.
Source: https://oilprice.com/
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