Gulf Oil and Gas accountACCOUNT

Congo Parliament Adopts New Hydrocarbons Code

Source: Reuters 6/16/2015, Location: Africa

Share |
Democratic Republic of Congo lawmakers have adopted a new hydrocarbons code that the country hopes will allow it to draw more benefits from its expanding oil sector.

The Central African mining nation pumps 25,000 barrels per day, accounting for just 11 percent of its export revenues, although exploration off the Atlantic coast and near its eastern border with Uganda could increase that significantly.

Perenco, an Anglo-French oil and gas company, is Congo's only active producer of oil, but French company Total and a company owned by Israeli billionaire Dan Gertler are exploring near Lake Albert, straddling the border with Uganda.

The bill's passage was announced in a statement by the president of the National Assembly, Aubin Minaku, which was seen by Reuters on Tuesday.

"The implementation of this law will allow (Congo) to assure the security of investments and to put in place a fiscal regime that permits the Congolese state to profit from its hydrocarbon resources so that those contribute in particular to growth and the fight against poverty," Minaku said.

The code, which has not yet been made law by President Joseph Kabila, would replace a 1981 law widely considered to be obsolete.

The final text of the bill was not immediately available.

Previous drafts have included a 40 percent capital gains tax on all contracts, although it was not clear if this clause remained in the version adopted by parliament.

One point of controversy among lawmakers was a provision in the National Assembly version that would require oil companies to cede at least 20 percent of shares in their operations to a "national society of commercial character."

The Senate called the provision "contrary to the principle of economic liberalism" and said it risked creating conflicts of interest.

Campaign groups have criticized secrecy in Congo's hydrocarbons sector.

Juvenal Munubo, a deputy from the opposition Union for the Congolese Nation (UNC) party, said the new code could help shed light on the sector.

"It will allow, unlike in the current situation, to know who is acting in the hydrocarbons sector, the parties, their identities, where they are located," he said.

Oil News in Congo >>

Egypt >>  9/19/2018 - The Minister of Energy of Cyprus, Mr. George Lakkotrypis, and the Minister of Petroleum and Mineral Resources of Egypt, Eng. Tarek El Molla, signed an...
Algeria >>  9/3/2018 - Maire Tecnimont S.p.A. announces that its main subsidiary Tecnimont S.p.A. has been provisionally awarded by the Direction Centrale Engineering & Proj...

Algeria >>  8/29/2018 - Petrofac has received a provisional letter of award for an engineering, procurement and construction (EPC) contract worth US$600 million with Sonatrac...

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

Related Articles: Coal  Electricity  General  Natural Gas  Oil 

Congo Oil & Gas 1 >>  2 |

More News


Oil & Gas Companies in Congo >>

Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.