Page 7 - AfrOil Week 29 2022

AfrOil INVESTMENT AfrOil

The number of blocks included in the auctions has been raised from 16 to 30 (Image: Hydrocarbures.gouv.dc)
The Ministry of Hydrocarbons has explained its a coalition of European states, pledged last year
decision to include more acreage in the licensing during the COP26 summit in Glasgow to pro-
round by referring to the supply concerns that vide $500mn in funding to DRC for reforest-
have emerged on world oil and gas markets since ation initiatives over a period of five years. To
the Russian invasion of Ukraine in late Febru- receive the funds, Kinshasa must meet certain
ary. Specifically, it has said that the DRC does requirements, such as granting protected status
not want to miss the opportunity to make the to 30% of the country’s land area and restoring
most of its natural resources. 80,000 square km of degraded forests and lands.
Even so, Kinshasa’s decision to expand the Additionally, Greenpeace said the ministry’s
scope of the auctions has drawn sharp criticism decision to include more blocks in the auction
from some observers – especially Greenpeace. had occurred “potentially without a legal man-
This well-known non-governmental organi- date” and alleged that Kinshasa had not pro-
sation (NGO) has repeatedly raised questions vided adequate notice to residents of the areas
about the licensing round, on the grounds that that would be affected by the sales. “In a field
the ministry’s plan will allow exploration work trip last week to four of the designated oil blocks,
in a number of environmentally sensitive areas. Greenpeace Africa’s forest campaigners col-
Greenpeace said in a statement published lected testimonies from local communities that
on July 19 that up to 12 of the 30 blocks slated were all shocked about the prospective auction
for inclusion in the auctions are located within of their lands to oil companies,” it said. “Some
Cuvette Centrale, an ecosystem covered by wet- communities, such as those living around the
lands and forests that lies at the centre of the Upemba national park, see the prospective oil
Congo basin, up from nine of the original 16 exploration as a direct threat to the lake they rely
blocks. It noted that Cuvette Centrale is known on for generations and are planning to resist it.”
for its biodiversity and contains peatlands that These critiques do not appear to have met
can act as a natural sink for carbon dioxide. with much sympathy among DRC officials.
The NGO also argued that the decision to According to a report from AfricaNews.com,
open the area to hydrocarbon exploration went Environment Minister Eve Bazaïba said in
against DRC’s agreement with the Central Afri- remarks broadcast on public television that
can Forest Initiative (CAFI), an international Greenpeace’s complaints were groundless. The
coalition of European, Asian and African states. government had carried out all of the necessary
CAFI, which was set up in 2015 by six Congo environmental studies before making explora-
River basin countries, South Korea, the EU and tion rights available to investors, she said. ™

Impact Oil & Gas seeks to raise up to

$60mn through open offer subscription

SOUTH AFRICA SOUTH Africa’s Impact Oil & Gas said on July In a statement, Impact said that under the
18 that it was seeking to raise up to $60mn by open offer, each existing shareholder listed in
offering its existing shareholders a chance to the company register as of July 12 would be enti-
acquire new ordinary shares through an open tled to another four ordinary shares for every 33
offer subscription. ordinary shares already held.

Week 29 20•July•2022 www. NEWSBASE .com P7