DRC gov't to review oil exploration contracts

Democratic Republic of Congo (DRC) 's Minister for Hydrocarbons Lambert Mende Omalanga has acknowledged the government's commitment in reviewing oil production and exploration contracts in DRC.

"The review of oil exploration contracts is a top priority of the Congolese government," the minister said Wednesday during an interview with UN-sponsored Okapi radio, adding the review of these contracts must be conducted in strict conformity with international standards. He also said the review of contracts will not boost the state budget for the year 2007.

"No one can claim today that a new oil policy could increase the budget significantly and have positive results. This can only be achieved through massive investments, and this takes time," Omalanga said.

He noted that oil revenue represents more than 25 percent of DRC' government budget revenues, and that this figure could increase following the discovery of new oil blocks in the central basin in northwestern province of Equator, and in the western region of Bandundu, as well as in the eastern region of Ituri.

Currently, two American companies, namely, Chevron and PerencoRep, are the only major international petroleum companies working in DRC's coastal city of Muanda in the western region of Bas-Congo, bordering the Atlantic Ocean.

Source: Xinhua