Democratic Republic of Congo President Joseph Kabila has approved a new oil code intended to impose order on a haphazardly regulated sector, according to a copy of the law seen by Reuters.
Despite some activists feared that Kabila would alter the text before signing, as he has sometimes done in the past, the code, which Kabila signed last month contains no major changes from the text passed by parliament in June.
The code imposes steep capital gains taxes and expands the state’s role in the sector though it leaves unanswered important questions about its implementation, including the criteria for exploration permits.Also institutes a minimum capital gains tax of between 35% and 45% on producers, a measure some analysts have said could deter investment.
Congo produces about 25,000 barrels of oil per day. Companies including Total SA of France are exploring for more deposits, Bloomberg reported.