Oil Laps Lake Albert's Western Shore
BMI View: A company working on blocks 1 and 2 along the western shore of Lake Albert in the Democratic Republic of Congo (DRC ) announced the area could hold as much as 2bn barrels of oil. While we agree there are excellent prospects for oil due to large volume discoveries on the Ugandan side of Lake Albert , we highlight the challenging business and political environments may pose difficulties to the potential monetisation of the area.
According to Giovanni Pedaci, Oil of DR Congo 's G eneral M anager, blocks on the Eastern shores of Lake Albert could contain reserves of as much as 2bn barrels of oil. The announcement comes after reports that the second phase of seismic acquisition was completed in August , however it was stipulated that significant investment would be needed to prove the potential of the identified structures through drilling.
This announcement provides a further bright spot for the Congolese oil industry after French company Total committed to investing US$10bn in the offshore Moho Nord project. Moho Nord is expected to add 140,000 barrels per day (b/d) to Congolese oil production by 2017 , around seven times more than the 2 0,000 b/d currently produced.
|Output Limited In DRC|
|Oil Production 2002-2012, '000b/d|