The government of Democratic Republic of Congo (DRC) has canceled the auction of 27 oil exploration blocks. Oil Minister Aime Sakombi Molendo made the announcement and cited delayed bids and a lack of competition.
Launched in 2022, the auction was anticipated to be a major event for the DRC’s oil industry, as the 27 blocks are estimated to contain about 22 billion barrels of oil. Despite the significant reserves, the auction did not meet expectations, leading to its cancellation. A new auction will be planned for a later date, but no details have been provided on the timeline or the number of blocks to be auctioned.
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Concerns
This decision comes amidst growing environmental concerns. Several of the auctioned plots overlap with protected areas, such as the Congo Basin rainforest and Virunga National Park, which are vital to global climate regulation. The Congo Basin rainforest, the second-largest in the world, and its tropical peatlands capture around 1.5 billion tons of carbon dioxide annually, equivalent to about 3% of global emissions. Drilling in these areas could endanger rare species, such as gorillas, and cause significant damage to critical ecosystems, leading to strong opposition from environmental groups.
The DRC’s oil industry has been relatively limited, primarily focusing on a small region along the Atlantic coast and offshore. The auction, if successful in the future, could bring significant economic benefits to the mineral-rich country but faces continued resistance due to its environmental and wildlife impacts.
