Angola and the Democratic Republic of Congo (DRC) will develop a deep offshore oil block jointly. The related agreement was signed on Oct 2, 2024, by Angolan and Congolese ministers of oil and gas, Diamantino Azevedo and Aimé Sakombi Molendo, respectively. The signing occurred during the Angola Oil & Gas (AOG) conference in Luanda. 

Under this deal, both countries will hold a 30% stake in the block, while Chevron will maintain a 40% majority interest.

#Luanda | 02.10.2024

Ce mercredi 02 octobre 2024 à Luanda, le Ministre des Finances, SEM Doudou Fwamba Likunde Li-Botayi @LikundeR , a signé, en présence du Président de la République d’Angola, SEM João Lourenço, le Règlement de la Commission de Supervision du Compte commun de… pic.twitter.com/3r1prFS6jC

— Ministère des Finances, RDC (@financesrdc) October 2, 2024

 The oil block, named 14/23, is located off the coast of Bas-Congo (DRC) and Cabinda (Angola), straddling the maritime border between the two nations. It has been included in a Zone of Common Interest (ZIC) since 2007 and has a production capacity of 3.29 million barrels of oil per year or over 9,000 barrels daily. The site is operated by Chevron's subsidiary, Cabinda Gulf Oil Company, in partnership with Eni, Etu Energias, and Angola's state-owned Sonangol.

According to the DRC’s oil and gas minister, the ZIC’s oil output should generate $5.56 billion in tax revenues for both countries. However, the official did not specify over which period the revenues will be generated. This figure seems optimistic unless it includes projections for future developments beyond the initial phase.

The new deal between Angola and the DRC ends a 50-year-plus dispute.  There had been political tensions over the delineation of the exclusive economic zone and continental shelf between Angola and the DRC. This conflict was worsened by Angola's unilateral actions that violated the United Nations Convention on the Law of the Sea.

This agreement is the result of several years of diplomatic efforts. Previously, Angola and the DRC had signed agreements for joint exploitation of oil block 14/23, setting the stage for harmonizing production and revenue sharing in this strategic area.

"Thanks to this new dynamic, we will realize the dream of both countries. Angola has experience in such projects, and we will work with the DRC to leverage this experience," Minister Azevedo said at the signing ceremony.

The partnership with Angola will provide the DRC with opportunities for technology transfer and expertise in exploration and production. For the DRC, this agreement marks significant progress in finding new oil sources to boost its current production level of about 25,000 barrels per day.

Olivier de Souza