Italy’s Eni has agreed to explore and develop the Democratic Republic of Congo’s Cuvette basin in the eastern regions of the country, away from the offshore success of the international oil companies and instead near the great lakes Kivu and Tanganika.
Company chief exec Paolo Scaroni signed a strategic agreement Wednesday with Congolese Oil Minister René Isekemanga Nkeka outlining how Eni would train staffs, pay for local services and then explore and develop hydrocarbons.
Eni further is already in sub-saharan Nigeria, Gabon, Congo Brazzaville, Angola and Mozambique producing 450,000 barrels of oil equivalent with much yet to explore.
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ENI's approach is commendable. African governments are becoming increasing aware of the need for foreign multinational companies to be socially responsible. Training locals and employing locals will go a long way in improving the lives of the people in the DRC and will equip them with the necessary skills that they may use to start their own companies in the oil and gas industry. It will also help reduce the tensions between the company and the local people as witnessed in the Niger Delta in Nigeria.
Multinational companies wanting to do business in Africa will be faced with increased pressure to be socially responsible. With the current scramble for resources especially oil and gas in Africa, African governments are better placed to increase the price tag by demanding foreign companies to increase their investment in social responsibility. African people are becoming impatient with the slow progress of poverty reduction and the pressure on politians to perform will result in African governments seeking a 'quick solution' by demanding a lot from multinational companies. However and needless to say, African governments need to strike a balance. Excessive demands may be tantamount to scoring an own goal, as foreign companies may shy away from investing especially in those regions where the reserve potential is not lucrative, the costs of extraction are high and the general infrastructure is not up to standard. There is no doubt that such African countries like Angola and Nigeria, with their reserve potential, will dictate the rules of the game in their own environments.
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