The Republic of the Congo’s economy is heavily dependent on the extractive sector, which contributed 67% of the government’s total revenue in 2019. It is a leading producer of crude oil and produces gold and diamonds through artisanal mining. However, social conflicts have arisen around how revenues from natural resources are managed.
The Republic of the Congo has used the EITI process to shed more light on how extractive licenses are allocated and on transactions related to crude oil and sales and state-owned enterprises. To advance the country’s transparency agenda, ITIE Congo is conducting ongoing analysis of past and future extractive revenues through financial modelling. It is also examining the mechanisms underpinning the valorisation of oil production to support revenue forecasting.
ITIE Congo is using the EITI data to conduct financial modelling activities of past and future extractive revenues to help inform decision making on future production.
In 2017, EITI reporting on the proceeds of the sales of the government's in-kind share of oil showed that only 10% of these revenues flow to the treasury, with remaining revenues channeled to the reimbursement of loans and pre-financing agreements. This data opened new avenues for civil society and donors to scrutinise the management of Congo’s oil revenues and to analyse the valuation of Congolese oil sales, particularly in the context of its oil-backed liabilities and sovereign debt management.
The Republic of the Congo uses EITI implementation to report on the management of its growing forestry sector.
Extractive sector data
Production and exports
Top paying companies
Extractive sector management
Tax and legal framework
The Republic of the Congo’s mining sector is governed by the Mining Code, while the oil and gas sector is governed by the Hydrocarbon Code. Companies operating in sector are subject to petroleum taxation under the Hydrocarbon Code, which was revised in 2016 and includes a 15% “proportional mining royalty” and the state’s share of production (profit oil) as stipulated in production sharing contracts. Companies are also subject to common law taxes under the General Tax Code and the Customs Code.
The Ministry of Hydrocarbons oversees oil and gas exploration and exploitation activities. It is responsible for the implementation and monitoring of government policy and the development of legislative and regulatory provisions applicable to the hydrocarbons sector.
Licenses and contracts
Oil and gas exploration and production licenses are awarded through either an open tendering process or by mutual agreement with the government, and are published in a public repository. Research and mining licenses are awarded by the Minister of Mines on a first come first served basis.
In accordance with the Hydrocarbon Code and Mining Code, all oil, gas and mining (including production sharing contracts) are published in the Journal Officiel on the government’s website. Some contracts are also available through the Resource Contracts Portal.
In 2020, a draft law on beneficial ownership was proposed by the Ministry of Finance and Budget through the National Agency for Financial investments (ANIF). The draft law, which builds on the transparency law of March 2017, has yet to be legislated.
The Republic of the Congo’s 2018 EITI Report provides some beneficial ownership data for 14 extractive companies, however only four companies provide detailed data. The definition for beneficial ownership used in EITI reporting is based on the Fourth European Union Anti-Money Laundering Directive.
In accordance with Decree n°2000-186, surface royalties paid by oil and gas companies are collected by the central government and subsequently distributed as follows:
One third to the Public Treasury;
Two thirds to public authorities.
The Minister of Finance determines the regional public authorities and beneficiaries that receive shares of extractive revenues, and further decides how these revenues are distributed between different communities.
ITIE Congo is administered by the Republic of the Congo Multi-Stakeholder Group (MSG) in accordance with the Decree 2019-383. The MSG is chaired by the Minister of Finance and Budget, Mr Roger Rigobert Andely. The National Coordinator is Mr Michel Okoko.
The Republic of the Congo was found to have made meaningful progress with considerable improvements in implementing the 2016 EITI Standard in September 2020, following its second Validation. The Republic of the Congo has fully addressed six of the 15 corrective actions identified in its previous Validation. The next Validation is expected to commence in July 2022.