Congo 2016 Petroleum Code: revamp may deliver economic upgrade

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Report summary

After much expectation and delay, the new Hydrocarbon Code was finally ratified by parliament on 12 October 2016. Minimum taxation levels are tough, but our initial assessment suggests they will be an improvement on the majority of existing production sharing contracts (PSCs). The new terms will not be retroactive. The Code re-affirms the central role of the state and, indirectly, the national oil company SNPC in the upstream sector. Local content clauses have also been strengthened to help grow the indigenous oil and gas industry. On the plus side, the document provides much needed clarity on what future contractual conditions will look like, as well as a regulatory framework to support the ongoing licensing round. While initial indications are that the new terms could be attractive, they will ultimately be determined by negotiation or competitive bidding.

What's included

This report contains

  • Document

    Congo 2016 Petroleum Code: revamp may deliver economic upgrade

    PDF 631.16 KB

Table of contents

  • Few rules are set in stone
  • Minimum equity to be reserved for the state and indigenous companies
  • Potential improvements to field economics
  • But future contractual terms will fluctuate on an individual basis
  • Improved fiscal terms and prospective acreage should attract investment
  • Appendix A: Modelling assumptions

Tables and charts

This report includes 13 images and tables including:


  • Project IRR - Shallow water oil fields
  • Project NPV - Shallow water oil fields
  • Project IRR - Shallow water gas
  • Project NPV - Shallow water gas
  • Project IRR - Deepwater oil
  • Project NPV - Deepwater oil
  • Average government share
  • Available acreage during 2016 licensing round


  • Comparison between 1994 and 2016 Petroleum Codes
  • Shallow water oil
  • Deepwater oil
  • Shallow water gas
  • Appendix B: Key contractual elements of comparative tax markers

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