DRC cancels licensing round for 27 oil blocks

The Democratic Republic of Congo (DRC) has cancelled a licensing round for 27 oil blocks, originally launched in 2022 to tap into the nation's oil and gas potential, according to a statement posted on the hydrocarbons ministry's X account on Monday.

The statement dated October 11 cited multiple reasons for the cancellation, including late submissions, inappropriate or irregular offers, and a lack of competition.

"Given the above, I am obliged to declare the cancellation of the ongoing process," hydrocarbons minister Aime Sakombi Molendo said.

He added that the process would be relaunched soon, without providing a specific timeline.

Situated near key rainforest

DR Congo announced in July 2022 that it would offer 27 oil blocks and three gas blocks in the licensing round which drew condemnation from environmental groups and some of DR Congo's western partners.

Some blocks are situated in parts of the world's second-biggest rainforest, sparking fears that drilling could release large amounts of carbon into the atmosphere, jeopardising climate goals to tame global warming.

DR Congo rejected the criticisms, arguing that it needed to tap its natural resources for development.

DR Congo, a leading miner of copper, cobalt, gold and diamonds, has long aimed to boost its oil sector. The country is believed to have sizeable oil and gas reserves.

Controversy

The licensing process has faced controversy.

In November 2023, Reuters reported that a Canadian start-up run from a private home was chosen for a technically complex project to extract methane from the deep waters of a volatile lake, despite the company not meeting the tender's financial criteria.

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