A dispute worth about $4 billion has erupted between the Democratic Republic of the Congo and Perenco, with the Franco-British oil and gas group challenging a tax reassessment and hefty fines imposed by Congolese authorities, Africa Intelligence reported.

Perenco is the DRC’s sole active oil producer, operating in the coastal province of Kongo Central, including the Muanda area. At issue is a tax reassessment and penalties that Perenco is contesting. Environmental concerns linked to its operations are also expected to feature in upcoming talks between the two sides. The dispute follows a government audit of Perenco’s activities that has been underway for more than a year. The audit process covers the company’s petroleum operations in the DRC, including compliance with environmental and hydrocarbons regulations. Government officials and company representatives have held talks as part of the process.

In November 2025, Minister of Hydrocarbons Acacia Bandubola said the contract of international law firm Jeantet, which was assisting with the audit, had been extended by another year. The government also set up a task force to help the ministry monitor Perenco’s operations and its compliance with Congolese law. The tax dispute adds to growing scrutiny of Perenco’s operations in Muanda. In August 2026, Bandubola’s office rejected allegations that the minister had obstructed the audit, calling the claims unfounded. The ministry said it had requested a right of reply from the media outlet that published them.

Environmental concerns have also become part of the wider dispute. Human Rights Watch reported in July 2026 that a government environmental audit had flagged pollution linked to oil operations in Muanda, pointing to effects on soil and air quality. In August, a representative of the Ministry of Hydrocarbons confirmed to the organization that the government audit had identified negative impacts associated with Perenco’s operations.

Africa Intelligence reported that environmental damage will be on the agenda in the upcoming talks between Kinshasa and Perenco, alongside the financial dispute.

Perenco has operated in the DRC for decades, with its activities concentrated around mature fields in the coastal region. It continues to produce oil there while exploring ways to develop associated natural gas resources.

The talks could determine how the two sides resolve the tax and environmental issues surrounding Perenco’s operations and what role the company will play in the DRC going forward.