Congo cancels the licensing round for 27 oil block

According to a Monday statement on the hydrocarbons minister's X Twitter account, the Democratic Republic of Congo has canceled a licensing round originally launched in 2020 to tap the nation's potential for oil and gas.

The statement of October 11 listed multiple reasons for cancellation. These included late submissions, inappropriate and irregular offers, as well as a lack competition.

Aime Sakombi Molindo, hydrocarbons minister, said: "Given what I have just stated, I feel compelled to announce the cancellation of this process." He said that the process will be restarted shortly, but did not give a timeline.

Congo announced that in July 2022 it would offer three gas blocks and 27 oil blocks as part of the licensing round. This announcement was condemned by environmentalists and western partners.

Some blocks are located in the second largest rainforest on earth, causing fears that drilling may release large quantities of carbon into atmosphere, compromising climate goals to curb global warming.

Congo has rejected these criticisms and argued that its natural resources are needed for development.

Congo, which is a major producer of diamonds, gold, copper and cobalt has been working to develop its oil industry for many years. It is thought that the country has large oil and gas deposits.

The licensing process has been a source of controversy.

Reports in November 2023 stated that a Canadian startup run out of a home was selected for a complex, technically challenging project to extract the methane deep within the waters of a volatile, deep-water lake. This, despite not meeting the financial criteria. (Reporting and writing by Bate Felix, Portia Crowe and Bernadettebaum)

(source: Reuters)