US Company Offers $400M to Prevent Abandonment of 27 DRC Oil Blocks

The auction of 27 oil blocks and three gas blocks by the Government of the Democratic Republic of Congo (DRC) continues to be the subject of disputes with several international bodies.

Indeed, a financial technology company on biodiversity, based in New York and called “EQX Biome”, has said that it is ready to bet 400 million USD or (334 million pounds sterling) to transform the project of exploitation of 27 oil blocks in forest conservation projects.

This information was reported by the British newspaper The Guardian a few weeks ago indicating that this project would generate 6 billion dollars following the sale of the resulting carbon credits and would create more jobs than oil exploitation.

“The company estimates that the project would generate at least $6 billion, create more jobs than oil exploration and generate higher tax revenues for the DRC government, which has vigorously defended the auction.” reports The Guardian.

According to the same source, the concessions up for sale include areas of endangered gorilla habitat, parts of the world’s largest tropical peatlands in Cuvette Centrale and swaths of the world’s second largest rainforest in the Congo Basin, drawing criticism from environmentalists and Western governments who have warned of irreversible damage to the environment if exploration continues.

The source points out that three blocks of gas, auctioned at the same time, have already been sold to North American companies.

For the CEO of EQX Biome, Matthias Pitkowitz, quoted by the same source, this program will allow the economy of the affected regions to center around nature conservation.

“We have an alternative to oil exploration and provide a way to center the economy around conserving nature instead of destroying it for extractive industries,” he said.

And to add: “Oil and gas have never left anything good in Africa and take a long time to generate significant revenues. Clearly, all rainforest nations are waiting for a mechanism like this to monetize rainforests and conservation outcomes. “, he made hear.

Through the sale of these natural resources, including 27 oil and three gas blocks, launched by the Congolese Head of State, Félix Tshisekedi, on July 27, 2023 in Kinshasa, the Congolese Government aims to mobilize several billion dollars Americans to fight in particular against the insecurity which has taken up residence in the East of the Democratic Republic of Congo but also to face the poverty which is overwhelming more and more many families in the country.

Although this project of the Congolese Government has not benefited from the support of international organizations fighting against climate change, internally many are those who believe that this project could allow the DRC to diversify its economy long supported by the sector. mining.

The Democratic Republic of Congo (DRC) is one of the countries with considerable oil and gas potential that is still under-exploited. Its crude oil resources are estimated at more than 22 billion barrels of oil and 66 billion standard cubic meters of gas located in Lake Kivu.

The country has the ambition to increase its oil exploration from 22,000 barrels to 200,000 barrels per day.

According to official sources, the Democratic Republic of Congo exploits only 4.5% of the potential of its hydrocarbons with in particular the exploration-production in Moanda by the company PERENCO.