The Democratic Republic of Congo (DRC) Hydrocarbons Ministry said oil licenses granted to Israeli businessman Dan Gretler had expired.
Israeli businessman Dan Gertler is decidedly persona non grata in the DRC. A correspondence dated June 16, sent by the Congolese Minister of Hydrocarbons leaked this Sunday, June 20. On the letter, we read that the license to operate the oil areas, linked to Gertler, have expired.
The two blocks concerned by the letter are blocks 1 and 2 in eastern DRC, on the Ugandan border. The region contains significant deposits, potentially containing over a billion barrels of oil.
Dan Gertler's companies had obtained these permits through a relationship between the Israeli and former president Joseph Kabila, in 2010. They expired before Gertler's companies could begin mining the fields.
Another ambition of Dan Gertler fallen by the wayside
The letter from the Congolese Minister of Hydrocarbons, Didier Budimbu, was addressed to the Congolaise des Hydrocarbures (Cohydro). She asked the state-owned company to end all production sharing in the region. In addition, the letter from Budimbu requires that all technical data of Gertler's companies be transferred to Cohydro. Then the Gertler companies had to pay the costs due under the contract. There is no indication of the amount.
However, the spokesperson for Cohydro said the status of the blocks could not be changed. "Force majeure was declared in May 2021 by the Council of State", ruled the Cohydro. Before continuing: “We cannot change the statutes until the force majeure is resolved”.
Indeed, an oil export problem is present in eastern Congolese, due to the presence of secessionist armed groups In the region. Thereby, Israeli businessman took advantage of this context to afford mining contracts and petroleum exploitation permits at a lower cost. The involvement of President Joseph Kabila, very close to Gertler, had caused a scandal.
In the oil-rich Albertine Rift region, rugged terrain often discourages states from investing in mining. However, the deposits present in the west of Lake Victoria and as far as the east of the DRC are among the richest in Africa. In the case of the DRC, their exploitation was implicitly prohibited due to insecurity. But also against a backdrop of historic tensions between the country and neighboring Uganda. However, these tensions have been resolved recently, and Uganda is actively participating in the counterterrorism effort on the Congolese border.
Corruption in the DRC, Gertler and Kabila against Tshisekedi
Israeli Dan Gertler seized the opportunity of Kabila's presidency. Establishing its network of mining, petroleum and related transportation firms. The North Kivu region has been virtually monopolized by its conglomerate for years. He had become a billionaire thanks to this monopoly, among other things.
However, the US Treasury imposed sanctions on Gertler in 2017, for "corrupt mining and oil operations". For the United States, Gertler would have actively and illegally imposed an embargo on the entry of American firms into the market. However, two days before the end of former US President Donald Trump's tenure, those sanctions were eased. Dan Gertler and Trump still share the same lawyer.
Then, sanctions against Gertler were reinstated in March 2021. Gertler is on the run in Tel Aviv. He tried, in April, to redeem by offering dividends to its Congolese partners. However, the state of the DRC, under Felix Tshisekedi, has remained unmoved by the attempts of the Israeli. The DRC's engagement today in the crackdown on Gertler's illicit activities comes against the backdrop ofa fight against corruption by Tshisekedi. The president had clearly announced his intention to resolve the traditions of corruption in his country. This drew the wrath of Kabila's supporters, who were, until February, on the side of the current president.
This political problem, and the arrest of several allies of Kabila in the government and public administration, is only getting worse. Nevertheless, Felix Tshisekedi remains straight in his boots. In the case of corruption in the hydrocarbon sector, the Congolese state has allied itself with Uganda and Tanzania. The three countries seek to export their oil efficiently to the Tanzanian coast and then abroad.