“In the oil industry, the value of an oil and gas company is mainly determined by its reserves. This means that SOCO’s primary assets “are its entitlements to future production from reserves, and one of the distinct features of the industry is its depleting asset base and need for replacement through drilling and acquisition.(2)”
SOCO in need of a price tag….
In January 2014 Africa Intelligence revealed that it won’t be until November 2014 that the findings of the second phase of the Strategic Environmental Assessment (SEA), funded by the European Union, will be handed out to the Ministry of Hydrocarbon in DR-Congo. The SEA ought to be used to inform DRC Government decision-making and determine if Virunga National Park remains intact, disappears partially or totally (see post here below).
Any exploration activity by SOCO, or seismic study, should be put on hold until the EU-funded Strategic Environmental Assessment results are fully known. On the 7th of November 2013 Serge Lescaut, SOCO’s Central Africa director announced that the oil company will be waiting for the results of the Strategic Environmental Assessment commissioned by the DRC government and supported by the EU. The company official said to have the full support of DRC government and will respect its decision.
Unfortunately, this is not the case.
Local sources confirmed that SOCO International Plc is moving ahead and plans to start the seismic data acquisition in Lake Edward this month.
Source: Save Virunga