Republic of the Congo
Congo’s economy is highly dependent on the oil sector, which accounts for 80% of government revenues and 90% of total exports, according to the 2013 EITI report. The Republic of Congo produced over 300,000 barrels per day in 2013 and received over USD 5 billion in government revenues. The country holds 1.6 billion barrels of proven oil reserves, the fifth-largest in Sub-Saharan Africa, according the Oil & Gas Journal.
In March 2012, the Republic of Congo and Angola signed revenue sharing agreement (equal terms) to develop a deepwater oil field located in a Joint Development Zone (JDZ). In July 2013, Congo and Angola agreed to boost exploration in the JDZ and production is expected to begin in 2015, according to the Oil and Gas Journal. Natural gas reserves are significant but underexploited, due to the lack of infrastructure. The government is looking to further develop offshore oil and gas fields. In addition to conventional oil, Congo has potentially significant deposits of oil sands, which are currently being explored by the Italian firm ENI.
The mining sector is underdeveloped, but there is significant potential. Diamonds and gold are mainly produced by small-scale and artisanal miners. Exploration for iron ore and potash resources has attracted interest from international investors, according to the USGS. The development of these resources could help Congo diversify its petroleum-based economy. According to the 2014 World Bank’s Doing Business indicator, the Republic of the Congo has one of the worlds most challenging business climates, ranked 178th out of 189 countries.
Congo has made significant improvements in timeliness and the overall quality of its reports.
The country’s 2013 report covering the oil, gas and mining sector was published in December 2014.
The government also published four quarterly reports in June 2014 covering the 2013 fiscal period. The quarterly reports were produced by KPMG and are accessible to the public here (Q1 2013, Q2 2013, Q3 2013, Q4 2013).
Production Sharing Agreements (PSAs) and legislation governing the sector are also available on the Congo EITI website.
Congo became Compliant on 27 February 2013.
- The publication of quarterly reports that include, data on oil sales by the state owned enterprise ("Société Nationale des Pétroles du Congo"/SNPC) and revenue transfers between the latter and the treasury.
- Coverage of crude from production-sharing agreements and its monetization in EITI reporting.
- Coverage of social payments in EITI reporting.
- Tripartite MSG chairmanship.
- MSG CSOs have led on the organisation of validation.
- Companies now pay taxes directly to the Treasury and not to intermediary state institutions (as a result of lessons learned from EITI reporting).