The Imperative of Restructuring, Upgrading and Developing a New Petroleum Refining Industry in the Democratic Republic of Congo (DRC)

Abstract

This paper examines the imperative of restructuring, upgrading and developing a new oil refinery industry in the Democratic Republic of Congo. Since the DRC became an oil producer in 1976 until when its offshore fields came on stream, the DRC has remained reliant on total export and import of its oil output and oil refined products for its essential consumption needs.  The DRC is lacking a functioning oil refinery due to the breakdown of the only one Congolese Company of Oil Refinery Industry (SOCIR) in 1998. The necessity for a developed oil refinery is that the DRC oil potential is estimated at 20 billion proven barrels reserves and production is expected to reach 100 000 barrels per day, as soon as new blocks in the east of the DRC will move into production phase. Despite these likely oil reserves, the lack of a developed oil refinery will keep the DRC missing the competitive advantages and socio-economic benefits that an integrated oil industry can generate. The PESTIE model was used to achieve the aim and objectives defined. The quantitative survey combined with qualitative in-depth interviews facilitated the research process. This study revealed that a developed oil refinery could decrease the negative effects of colonial economic model on natural mineral resources exploitation in the DRC. This paper alerts public and private stakeholders about the positive socio-economic effects SOCIR or a new oil refinery development could generate, as result for policies, regulations, programmes and strategic plans best practice in promoting the entire oil industry integration and development in the DRC.