Page 4 - AfrOil Week 11 2023

AfrOil COMMENTARY AfrOil

The number of blocks included in the auctions was raised from the original 16 to 30 (Image: Hydrocarbures.gouv.

DRC licensing round

attracts green investor

US biodiversity fund EQX Biome aims to convince Kinshasa that carbon credits are

a better long-term investment proposition than oil exploration and development

AN unconventional candidate has entered the consequences of oil exploration and production.
onshore bidding round launched last July by the They have drawn particular attention to peat-
WHAT: Democratic Republic of Congo (DRC) – EQX lands in the central Congo River basin, which
EQX Biome has bid for 27 Biome, a US-based investment firm that focuses are estimated to contain around 30bn tonnes of
potentially oil-bearing on preserving biodiversity. carbon.
blocks in the DRC’s According to AFP, EQX Biome has submit- EQX Biome has proposed that the DRC’s
onshore licensing round. ted offers for all 27 potentially oil-bearing blocks government opt to forego drilling in all 27 blocks
included in the licensing round. In its bids, it in favour of investing in conservation projects
WHY: outlined an alternative business case to oil explo- that would generate carbon credits. These are
The fund says the sites ration, saying it was ready to spend $400mn on credits from certified conservation projects that
could generate $6bn in
carbon credits. conservation projects that could generate $6bn represent volumes of CO2 that have been pre-
via the sale of carbon credits over 20 years. It vented from being emitted into the atmosphere,
WHAT NEXT: described this outcome as vastly preferable to typically at the rate of 1 tonne of CO2 per credit.
The offer may fizzle but drilling in environmentally sensitive locations According to Matthias Pitkowitz, the fund’s
is likely to inspire other such as forested areas and peatlands that act as CEO, this proposal makes better economic
green investors. carbon dioxide sinks. sense than oil exploration and development, as
The DRC’s Ministry of Hydrocarbons invited it has the potential to create thousands of local
international oil companies (IOCs) to invest in jobs and can generate taxable revenue. “Six
the 27 blocks last summer, arguing that hydro- billion dollars instead of oil drilling. This isn’t
carbon development was an economic imper- dreamland,” he told AFP.
ative in light of conditions on world energy EQX Biome’s estimate of $6bn in ultimate
markets and the need to develop the country’s revenues is based on projections of the success
economy. However, environmental groups of conservation projects that would generate
have expressed concerns about the potential carbon credits.

P4 www. NEWSBASE .com Week 11 16•March•2023