Environmental activists are sounding the alarm, cautioning that oil companies vying for exploration rights in the Democratic Republic of Congo (DRC) may encounter substantial hurdles in securing insurance and reinsurance for their high-risk endeavors. These exploration blocks in ecologically fragile zones encompassing Lake Tanganyika and Lake Albert have generated fierce opposition from local communities and conservationists.
In anticipation of a significant reinsurance event in Monaco, a consortium of environmental organizations, including Greenpeace Africa, Insure Our Future, Reclaim Finance, and Urgewald, has published a report titled “Blood Oil.” This report delivers a powerful message, imploring insurers and reinsurers to refrain from endorsing oil and gas initiatives in the Democratic Republic of Congo (DRC) due to concerns over potential human rights infringements and environmental standards.
Lindsay Keenan, the campaign coordinator at Insure Our Future, stated, “Insurers and reinsurers who prioritize short-term profits over global climate concerns would effectively become accomplices in the actions of companies bidding for oil.”
According to the report, seven of the world’s 20 largest insurance companies and four major reinsurance companies have already excluded oil exploration and production in the DRC from their portfolios. It also highlights that some insurers, including AXIS, demand the free, prior, and informed consent of indigenous peoples before providing coverage—a requirement the DRC government has not fulfilled.
Perenco, a French-British oil company operating in the DRC, is singled out in the report as one of the potential bidders likely to face heightened insurance costs and reduced availability of reinsurance. Perenco has faced allegations of human rights violations and environmental harm.
The DRC government has initiated a bidding round for 20 oil blocks in Lake Tanganyika and Lake Albert, known for their rich biodiversity and endangered species. Environmental activists assert that 13 blocks overlap with protected areas and national parks, including Virunga and Salonga.
This bidding round has also heightened geopolitical tensions, with neighboring nations like Uganda and Tanzania disputing ownership of certain blocks. Activists warn that oil exploration in the region could exacerbate conflicts and instability.
In their call to action, the activists urge the DRC government to cancel the bidding round and instead focus on developing renewable energy sources. They also call on the international community to support the DRC’s transition toward a low-carbon economy.
Source: Energy Voice
