Republic of Congo's 2018 EITI Report covers extractive activities in the country for that fiscal year.
The country is a leading producer of crude oil, representing around 90% of the exports of the country. It also exports gold and diamonds and generates revenues through the forestry sector. Yet social conflicts have arisen around management of revenues, subnational transfers and environmental impacts of the extractive industries. The EITI has supported greater transparency in sales of the state’s share of in-kind oil revenues and Parliament is now using EITI Reports as a control tool in approving the state’s budget. The national EITI structure has led outreach to oil and diamond producing regions, generating public debate. At the end of 2020 EITI in Republic of Congo published an EITI report for the fiscal year 2018.
Companies operating in the oil and gas sector are subject to petroleum taxation managed by the Hydrocarbon Code and to common law taxes managed by the Genral Tax Code and the Customs Code. The petroleum taxation notably includes a Proportional Mining Royalty and the State share of production (Profit Oil) as per the Production Sharing contracts.
The government’s policy requires that all contracts signed by the state with mining, oil and gas companies, including PSCs to be published in the Journal Officiel and are therefore public documents.
Oil and gas licenses are mainly awarded on the basis of competitive tender, while mining licenses are granted on a ‘first come first served’ basis. Exploration permits are awarded for four years (possibility of 6 years for frontier areas or deep marines areas), renewable three years twice, while production-sharing contracts are concluded on the basis of production licenses granted for maximum 25 years for liquid hydrocarbons and 30 years for natural gas, renewable five years.
The Republic of the Congo has rich natural resources deposits and a potential in notably crude oil, iron, gold, diamond, phosphate, potach and magnesium. An important share of its mining resources are for now unexploited due to a lack of transportation infrastructure and difficulty to raise funds. The mining sector is thus still under development phase.
The latest EITI disclosures (2018) show that the Republic of the Congo received 1 116 billion Franc CFA from extractive industry taxation. Almost all (97.19%) of these revenues came from hydrocarbons, mainly crude oil, with the rest coming from forestry (2.67%) and mining (0.14%). Revenues were mainly collected through the state’s share of in-kind revenue.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
- 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.
- Companies now pay taxes directly to the Treasury and not to intermediary state institutions (as a result of lessons learned from EITI reporting).
- Coverage of social payments in EITI reporting.
- Tripartite MSG chairmanship.
- Civil society representatives on the MSG have led on the organisation of Validation.
The government announced its intention to implement the EITI in a statement by the Minister of Mines, Industry and Geology at the 2nd EITI Global Conference in London on 17 March 2005. The Republic of Congo joined EITI in 2007.
The 2020 work plan details 5 objectives: Improve internal governance, Sustain EITI implementation, Integrate EITI implementation in government and companies systems , reinforce systematic disclosure and improve communication and relations with stakeholders.
The 27 December 2019 decret describes the functioning and the organization of the Multi Stakeholder group (MSG). The MSG is under the authority of the Minister of Finance, Mr Calixte Nganongo. The National Coordinator is Mr Michel Okoko.
Republic of Congo's 2017 EITI Report covers extractive activities in the country for that fiscal year.
The Republic of the Congo's 2016 EITI Report covers extractive activities in the country for that fiscal year.
This Validation is completed.The Republic of the Congo was found to have made meaningful progress.
Validation commenced on 1 April 2017.
Validation country visit: 8-12 May 2017.
Secretariat initial assessment was completed on 27 September 2017.
The Validation Report was issued on 18 December 2017.
Discussed by the VC on 4 December 2017 and 12 January 2018.
Recommendation from VC to Board TBC.
Documents related to the Validation:
Initial data collection and stakeholder consultations
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All available summary data files for EITI Reports have been uploaded to our website. These files are also stored on a google drive, accessible through the link below. The files are in Microsoft excel format.