Democratic+Republic+of+the+Congo+Petroleum+and+Natural+Gas

China Likely To Invest In The Democratic Republic Of Congo’s Petroleum Sector In The Next Five Years Due To Eastern Oil Block Potential, Unlikely In Natural Gas Due To No Reserves
It is likely China will invest in the oil blocks on Lake Albert in the Eastern Block in the next five years due to reports of the oil blocks containing 2 billion barrels of oil reserves. China’s CNOOC currently operates in the country and it is likely they will make an attempt on drilling in the area for the oil reserves. In addition, President Joseph Kabila and Chen Yuan, chairman of the China Development Bank, signed an agreement to fund growth in the DRC; it is to cover multiple sectors including oil investments. It is unlikely China will invest in the Democratic Republic of Congo’s natural gas sector in the next five years; currently the DRC does not produce any gas.
 * Executive Summary: **

In September 2013 seismic studies revealed a vast amount of oil beneath Lake Albert which shares the border with Uganda; these studies estimate that there may be as much as 2 billion barrels of oil. If the Lake Albert blocks are confirmed to have oil, then major investments are needed for further development, exploration and exploitation activities. In 2008 UK-based Tullow Oil discovered oil on the Ugandan side of Lake Albert; with the proper exploration equipment both China and the DRC can explore and exploit any big oil finds on DRCs eastern border. According to IHS Global Insight current recoverable oil reserves are estimated to be up to 200 million barrels of crude.
 * Discussion: **

Production from the oil industry mainly comes from offshore fields; other areas of exploration potential are the Tanganyika Graben along the country's eastern border and the 750,000 km2 Central Basin. Some shallow wells have yielded small quantities of oil on the boundary between the Democratic Republic of Congo and Uganda. The Albertine Rift Basin as a whole covers onshore and offshore Lake Albert areas in the Democratic Republic of Congo and Uganda. In March 2011 President Joseph Kabila and Chen Yuan, chairman of the China Development Bank, signed an agreement to fund growth in the DRC; it is to cover multiple sectors including oil. China is an ideal continuous investor in the DRCs petroleum sector because of current involvement already and the need for proper exploitation in the Eastern Blocks. The proper exploitation of oil is hampered by the decade s of instability and war the country has faced.

** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson