PLATFORM Unravelling the CarbonWeb
Sign up to our mailing list
 
Read the latest newsletter

Unravelling the Carbon Web is a project by PLATFORM. We work to reduce the environmental and social impacts of oil corporations, to help citizens gain a say in decisions that affect them, and to support the transition to a more sustainable energy economy.

SEE ALSO

"Pétrole au Lac Albert: Révélation des contrats congolais contestés" - the report in French

''A Lake of Oil: Congo's contracts escalate conflict, pollution & poverty'' 

Leaked Contracts:

Tullow/Heritage 2006 PSA contract

Divine Inspiration 2008 PSA: in English - in French

PLATFORM Press Release in French

Leaked Oil Contracts in Congo threaten resource wars, environmental destruction and economic rip-off

en français -->

Tullow & British Embassy push disputed deal that could cut Congo's revenues by $10 billion
 
Confidential oil contracts held by UK companies Tullow and Heritage in the Democratic Republic of Congo were leaked today, revealing the danger of economic rip-off and rights abuses in one of Africa's most unstable countries.

The Production Sharing Agreements (PSAs) are accompanied by a legal analysis, ''A Lake of Oil - Congo's controversial contracts compromise rights, environment & safety'', published by oil watchdog PLATFORM in partnership with the African Institute for Energy Governance (Afiego). [1]

As the dispute between Tullow/Heritage and the South African-led Divine Inspiration consortium over lucrative oil licences on Lake Albert comes to a head [2], the contract terms have been released for the first time. [3]  PLATFORM's analysis compares revenues delivered by two competing contracts, revealing that:

  •  Both Tullow/Heritage & Divine/H Oil's contracts guarantee excessive profits, at the expense of Congo's poor
  • Tullow's contract terms reduce the Congolese take by around 15%, compared to Divine's.
  • If recognised, Tullow's contract will cut Congolese government revenues by over $10 billion - a figure equivalent to the country's entire national debt. Tullow and the British Embassy in Kinshasa have been lobbying hard for these contract terms. This represents a significant transfer of wealth from some of Africa's poorest to British and Irish investors.
In ''A Lake of Oil", PLATFORM also raises concerns about:
  • Co-operation between oil companies and military groups and the likelihood of escalating resource-driven war in eastern Congo. (p26 & 33)
  • The legal rights granted to flare natural gas (p.24)
  • The complete absence of penalties for environmental damage  (p.21),
  • The 'stabilisation clause',  which will restrict DRC's ability to improve its environmental protection and human rights standards in the future (p.27)

Map of oil blocks in Congo & Uganda.

Alfred Buju, head of the Justice and Peace Commission in Ituri, DRC, at the heart of Exploration Block 2, said: ''This report reveals the contracts that will affect our communities and raises serious concerns about who will benefit from oil extraction in Ituri. We need the government and international companies to be honest and clear - will our environment be protected? The history of natural resources in eastern DRC makes us worry that oil will lead to more conflict.''

PLATFORM Campaigner Mika Minio said, ''The reality is that extracting Congolese crude will escalate resource wars, transfer wealth from Congo's poorest to London's richest, create new health problems for local communities, increase corruption and pollute the land, water and air. It is up to social movements and civil society to create the pressure to defend rights, livelihoods and Congo's rich environment."

PLATFORM Researcher Taimour Lay in Bunia, Congo DRC, said "The confidential documents we have published make clear that the British government and oil companies have been lobbying for terms which leave Congo significantly worse off than another contract already on the table. This shows a wanton prioritisation of profit and British control of African resources over all else."

Taimour Lay added, "Tullow's statements demonstrate strength in corporate responsibility rhetoric. Yet their practice here on Lake Albert tells a different story - one of arrogance, environmental damage, collusion in secrecy and indifference to human rights abuses."

 

DOWNLOAD REPORTS & LEAKED DOCUMENTS

''A Lake of Oil: Congo's contracts escalate conflict, pollution & poverty'' - Analysis of Congo's PSAs published by PLATFORM in partnership with the Africa Institute for Energy Governance.

"Pétrole au Lac Albert: Révélation des contrats congolais contestés" - the report in French.

Tullow/Heritage's PSA contract for Blocks 1 & 2 signed in 2006 (in French)

Divine Inspiration Consortium's PSA contract for Block 1 signed in 2008 - in English and in French

PLATFORM Press Release in French

 

 

 

CONTACT
Taimour Lay in Bunia, Congo (GMT+ 3): ++00 243 995 291 018, taimourlay@gmail.com
Mika Minio-Paluello in San Francisco, USA (GMT  + 8) : ++1 925 234 0910, mika@platformlondon.org
PLATFORM Office in London, England: +44 207 4033738


NOTES FOR EDITORS

NOTE 1:
The analysis was carried out by PLATFORM,  in partnership with the African Institute for Energy Governance
The report is available at http://www.carbonweb.org/drc

NOTE 2:
The Congolese blocks on Lake Albert are widely assumed to hold large reserves of crude oil, following Tullow and Heritage's major discoveries on the adjoining blocks on the Ugandan side of the border. See http://www.carbonweb.org/uganda/

NOTE 3:
PLATFORM has obtained and released copies of Tullow/Heritage’s 2006 PSA for Blocks 1 & 2  and Divine Inspiration/H Oil's 2008 PSA for Block 1, on Lake Albert. The 2006 contract is disputed by both sides since the Congolese Ministry of Energy appeared to annul it in October 2007, prior to reassigning Block 1 to the Divine Inspiration consortium in 2008. The Congolese government has expressed a desire to finalise the status of contracts and begin exploration during 2010.

The contracts and analysis are available in French and English at http://www.carbonweb.org/drc