DRC cancels auction of 27 Oil Blocks
14 October 2024
The DRC government has announced the cancellation of the controversial auction of 27 oil blocks. While welcoming this decision, RFUK expresses concern over the stated intention of the Hydrocarbons Minister, Aimé Sakombi Molendo, to start another bidding process.
Since its launch in July 2022, the auction of 30 oil and gas blocks has drawn heavy criticism from civil society observers, ranging from the legality of the auction itself, to the devastating impacts of possible oil developments in carbon and biodiversity-rich forests and the ancestral lands of thousands of local and Indigenous communities.
While the cancellation of the auction is welcome news, the government has signalled its intention to start another process as soon as possible, albeit possibly excluding certain blocks that overlap with the country’s protected areas.
At the same time, RFUK understands that a new auction could involve 'restricted' tenders, raising concerns over the transparency of the process. According to Africa Intelligence, one such agreement was signed in September 2021 with the Emirati-registered Clayhall Group – a gambling company with no known experience in the oil sector, which gave the company two oil blocks in exchange for the prefinancing of geological surveys by GeoSigmoid. Furthermore, this approach could once again leave affected communities uninformed about the process and inadequately consulted, even though they are likely to suffer the most direct consequences of potential oil exploitation.
Joe Eisen, RFUK Executive Director, said ''It is high-time that the DRC government put an end to this chaotic and flawed process. Rather than seeking new bids for these blocks, many of which are likely to be stranded assets in the coming years as the world transitions to a low carbon development, it should instead focus on delivering a just energy transition for the country, harnessing its enormous potential in renewable energy and enabling community access to this''.
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