DRC Signs ‘Production Sharing’ Agreement for Lake Kivu Gas Blocks
The government represented by the Ministers of Hydrocarbons Didier Budimbu, that of Finance Nicolas Kazadi and the companies (Winds Exploration and Production and Alfajiri Energy) signed on Saturday September 9, 2023 in Kinshasa, the “production sharing” contract for the exploitation of two gas blocks from Lake Kivu open to exploration and production in the DRC.
A procedure which respected the rules was unanimously testified by the two companies concerned alongside the Société Nationale des Hydrocarbures (SONAHYDROC SA) representing the Congolese State and which will have an exclusive 20% of the profits from the activities.
“On this historic day, we will proceed with the official signing of CPP (“production sharing” contract) for the valorization of methane gas from Lake Kivu, the Idjwi and Lwandjofu blocks and materialize the vision of the President of the Republic, leader of the State Félix-Antoine Tshisekedi that of seeing the populations bordering Lake Kivu enjoy the gas potential of the latter.
Long considered a time bomb because of its harmful gas, this same lake will soon make it possible to improve the daily experience of indigenous populations, particularly through the production of electricity for the population, the creation of jobs for our compatriots, the investment opportunities for foreigners and nationals but above all the development of surrounding towns and villages for the benefit of Congolese people”,
It should be noted that this step comes after the launch of the Notices of Expression of Interest on the three Lake Kivu gas blocks.
The Ad Hoc Commission responsible for organizing this Call for Tenders process, established by the Minister of Hydrocarbons, had received a total of 14 applications, five (5) of which had shown interest in the Idwji Block, five (5) on the Lwandjofu Block and four (4) on Makelele Block with a view to acquiring exploration-production hydrocarbon rights.
At the end of the pre-selection and selection phases carried out by Bloc, the Symbion Power & RED Consortium of American Rights was selected on the Makelele Block; the company Alfajiri Energy of Canadian Rights on the Lwandjofu Block and the company Winds Exploration & Production, of American nationality, on the Idwji Block.
This government approach is in accordance with the requirements of the law governing the general regime of Hydrocarbons in the DRC as well as the decree of April 9, 2016 regulating Hydrocarbons in the Democratic Republic of Congo.
