Deal #1165

Location #1

Spatial accuracy level
Administrative region
Location
Etoumbi, Congo

Target country
Congo, Rep.
Comment on location
Sangha plantation in Cuvette-Ouest district-- 100ha

Location #2

Spatial accuracy level
Administrative region
Location
Owando, Congo

Target country
Congo, Rep.
Comment on location
RNPC land in the Cuvette district- 500ha

Location #3

Spatial accuracy level
Administrative region
Location
Kandeko, Congo

Target country
Congo, Rep.
Comment on location
District Mokéko

Location #4

Spatial accuracy level
Administrative region
Location
Rue MAKOLA, Brazzaville, Congo

Target country
Congo, Rep.
Comment on location
District Mokeko

Land area

Intended size (in ha)
300000
Size under contract (leased or purchased area, in ha)
[2013] 50000
Size in operation (production, in ha)
[2015] 3500
Comment on land area
Fri El Green originally leased 4000ha existing oil palm plantations, plus an agreement with Congo state to develop a further 40000 over 30 years. Eco Oil Energy leased 50 000hectares with an expansion up to 300 000ha within the next eight years. Another report states 70000ha intended size. Plan is to plant 5000hectares of oil palm per annum.

Intention of investment

Intention of the investment
Biofuels, Food crops, Non-food agricultural commodities, Agriculture unspecified
Comment on intention of investment
The company plans to produce crude oil, refined palm oil, palm kernel oil, margarine, cosmetics, soap, animal feed and also biofuel.

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2013] Concluded (Contract signed)
Comment on negotiation status
Fri El Green Power (Italy) originally signed the contract in 2008, with consultation occurring in May 2009. The government cancelled the contract due to the failure of the company to meet the contractual commitments. Eco Oil Energy Congo signed a new lease with the government in 2013 for the land which formerly belonged to Sangha Palm Company and the Congo National Palm Plantations Authority, which was previously leased by Fri El Green. Lease duration for Fri El Green was initially 30 years (2008).

Implementation status

Implementation status
In operation (production)
Comment on implementation status
The year of production under the previous state-owned company is not known. Fri-El Green brought the plantation into production in 2009. While Eco Oil Energy brought the plantation into production in 2013. The total investment from Eco Oil Energy will be 350 billion CFA francs, with an initial investment of 50 billion CFA francs. First finished products were produced in April 2015.

Contract farming

Contract farming
No

Contract #1

Duration of the agreement (in years)
25

Number of jobs for foreigners created

Jobs created (foreign)
Yes
Planned number of jobs (foreign)
500

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
4500
Comment on jobs created (domestic)
Priority and selective recruitment of former employees of the former Sangha Palm and palm groves National Board of Congo (RNPC )

Operating company

Operating company
Comment on investment chain
Two banking agencies, namely BGFIBank and Ecobank, will provide financing for the project. One data source states that the Society of African oil exploration and distribution, SARPD-Oil may also be a shareholder in the project.

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Comment on data source
Rainforest foundation - Seeds of destruction

Data source #2

Data source type
Media report
File
Date
2015-08-20
Comment on data source
Jeune Afrique -- Congo-Brazzaville : la renaissance des pépinières

Data source #3

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-Planet palm oil, September 2014

Data source #4

Data source type
Media report
File
Date
2015-08-18
Comment on data source
Farmland Grab- Eco-Oil Energie investira 350 milliards dans un projet agroalimentaire au Congo

Data source #5

Data source type
Media report
File
Date
2013-10-29
Comment on data source
Relancer une palmeraie avec CFA 350 milliards

Data source #6

Data source type
Media report
File
Date
2015-04-16
Comment on data source
Agro-industrie : Eco-oil Énergie a démarré sa production d’huile de palme

Data source #7

Data source type
Media report
File
Date
2013-10-29
Comment on data source
Industrie agroalimentaire : Eco-Oil Énergie relance la filière huile de palme au Congo

Data source #8

Data source type
Company sources
File
Comment on data source
Eco Oil Energy Facebook page

Data source #9

Data source type
Media report
File
Date
2013-10-28
Comment on data source
Eco Oil Energie reprend les activités de Sangha-Palm

Data source #10

Data source type
Media report
File
Date
2015-04-17
Comment on data source
Palm oil: Annual Output of 20 million Liters for Eco-Oil Energy SA (Congo)

Data source #11

Data source type
Media report
File
Date
2015-08-27
Comment on data source
Le Monde Afrique-- L’huile de palme et la margarine « made in Congo » de retour dans les marmites

Promised benefits for local communities

Promised benefits for local communities
Health
Education

Former land owner (not by constitution)

Former land owner
State
Comment on former land owner
Originally owned by the Sangha Palm Company and the Congo National Palm Plantations Authority. Fri El Green leased 4000ha from 2008, however their contract was cancelled and the land returned to the state until late in 2013 when the agreement was reached with Eco Oil Energy.

Former land use

Former land use
Commercial (large-scale) agriculture

Former land cover

Former land cover
Cropland
Comment on former land cover
Oil Palm

Detailed crop, animal and mineral information

Crops area
Oil Palm

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
Produce will satisfy the local demand first, and then be exported to other countries in Africa. One source states 45,000 hectares will be devoted to the production of biodiesel for export.

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Three industrial mills have been revamped/ built. AGF (Agrofuel production);POL (Palm oil production). Annual production of 20 million liters of palm oil has been achieved to date (2015). Processing plant is located at Mokeko.

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
Originally leased by Fri El Green, however contract was cancelled as the company did not meet their contractual obligations. Fri El Green leased 4000ha, with an option to expand to 44000ha. Fri El Green only received a portion of the Sangha Palm and National Board palm groves of Congo plantations. Eco Oil Energy seems to have acquired all the land previously under Sangha Palm and National Board palm groves of Congo. One data source states that the Society of African oil exploration and distribution, SARPD-Oil may also be a shareholder in the project- could not find any further information on this.

Oct. 27, 2015, 10:01 a.m.

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Sept. 8, 2015, 12:59 p.m.

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Aug. 25, 2015, 3:04 p.m.

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Dec. 5, 2014, 8:44 a.m.

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Nov. 4, 2014, 1:24 p.m.

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June 4, 2013, 4:27 p.m.

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May 20, 2013, 12:09 p.m.

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March 7, 2013, 10:13 a.m.

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March 7, 2013, 10:09 a.m.

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Feb. 15, 2013, 5:01 p.m.

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