Congo's new oil minister to examine delayed deals

KINSHASA, (Reuters)

Democratic Republic of Congo's newly appointed oil minister will review exploration contracts yet to be approved by the President, and wants a new oil code passed into law by the end of March, he said late on Monday.

The central African country produces just 25,000 barrels a day from its southwestern region, but its potential may be much greater, and the minister wants to attract investors.

Several deals agreed by previous ministers have been waiting for years for the presidential green light they need before firms can begin work in Congo.

Firms active in the Congolese oil sector include Tullow Oil , which, with its project partners, is awaiting ratification of licences for two blocks in Lake Albert, and Dominion Petroleum, which has been waiting for approval of its award of a block in Lake Edward since 2007.

Celestin Mbuyu, a former interior minister who was given the oil portfolio in a cabinet reshuffle late last month, said he wanted a cleaner outcome than Congo's wide-ranging review of mining deals.

That process was completed last year, but two large copper contracts are yet to be settled. One, involving First Quantum and the IFC, the World Bank's private sector arm, is the subject of international arbitration.

"You can't conclude that because of some problems with some companies that you can't work with the state," Mbuyu told Reuters in an interview. A new oil code that will standardise agreements is awaiting parliamentary approval, he said.

"We're asking for it to be done at the earliest possible opportunity," Mbuyu said, suggesting the end of March as a likely date.

CONGOLESE COMPLICATIONS

Three regions -- Lake Albert, which borders Uganda in the east, Bas-Congo in the south, and the central basin -- may between them hold several billion barrels of oil, he said.

"We don't yet have precise studies, but it could mean the mining sector is nothing in comparison to oil," said Mbuyu. Congo, once a major producer of copper and cobalt, is trying to revive its mining industry, which despite years of underinvestment and mismanagement is still an economic backbone.

"If all goes well we could have first (oil) production in three to four years," Mbuyu said. "There's potential everywhere. The problem now is to see how to exploit the value," said Mbuyu. "Betweeen 30 and 40 investors have come to see me since I became minister," he added.

"Congo is open to all, but it's very complicated work -- we have to go slowly and go together," he said. Mbuyu said he also wanted to ensure all of the country's 145 territories have a petrol station, up from about one third of them now. "Some territories have no roads and no petrol stations for hundreds of miles," he said. "We are discussing how to commercialise petrol stations."