15 September 2015, News Wires – Democratic Republic of Congo President Joseph Kabila has approved a new hydrocarbons code that had been passed by Parliament in mid-June, according to a report.
Kabila signed off on the code last month, Reuters reported, citing a copy of the signed code it has seen.
The approved code has no major changes to the bill passed in the summer, it said.
Measures covered in the new code include capital gains tax of between 35% and 45% payable by producers, ceding a 20% stake in blocks to the state, increased transparency, public tenders and publication of bidders, Reuters said.
DR Congo currently has oil output of 25,000 barrels per day, with Anglo-French independent Perenco being DR Congo’s only active producer of oil, and the company is presently examining offshore potential.
Last year DR Congo also launched a licensing exercise for blocks on the western coastal basin near the Congo estuary and bordering the Angolan enclave of Cabinda, although no timetable was mentioned.