Fortescue, the company led by Australian mining magnate Andrew Forrest, has been excluded from playing a role in the development of the world’s largest hydropower project in the Democratic Republic of Congo. The decision was announced by President Felix Tshisekedi’s office, which revealed that a Nigerian oil producer, Natural Oilfield Services Ltd., will take over the project.
Under the new arrangement, Natural Oilfield Services Ltd. has entered into a preliminary agreement with Congo to construct a scaled-down version of Fortescue Ltd.’s Grand Inga project. This revised plan involves the construction of a 7-gigawatt facility on the Congo River, as well as the establishment of an aluminum foundry and refinery capable of processing millions of tons annually.
It is worth noting that the Indian owners of Natural Oilfield Services Ltd. have faced allegations in New Delhi related to defrauding public banks of approximately $1.7 billion. The company, however, has yet to respond to these accusations.
The Grand Inga project, if fully realized, would emerge as the largest source of hydropower in the world, surpassing the Three Gorges Dam. However, the undertaking has encountered obstacles owing to the country’s history of corruption and the anticipated high costs, with some estimates exceeding $80 billion.
Although Fortescue initially replaced a consortium comprised of Spanish and Chinese companies in the development of the Inga III project, this initiative ultimately faltered. While Fortescue has expressed a willingness to engage in further discussions regarding its involvement in the DRC, the company will no longer participate in the revised Inga plan, as confirmed by Congo’s presidency.
Fortescue had intended to spearhead a green hydrogen project utilizing Inga’s power, but the project’s webpage is no longer operational.
Conversely, Natural Oilfield Services Ltd. operates under the umbrella of Sterling Oil Exploration & Production Co., a significant crude oil producer in Nigeria. The company presently churns out roughly 70,000 barrels per day and has recently put into operation a new oil block in the West African country, with the aim of adding an extra 40,000 barrels daily to its output.
However, Sterling Oil’s founders, Nitin and Chetan Sandesara, have been charged in India for alleged economic fraud amounting to over $1.7 billion. India’s Enforcement Directorate has alleged that a significant portion of the funds raised for the Sandesaras’ Indian companies was diverted and laundered before being utilized to finance their oil business in Nigeria. The Sandesara brothers have been declared fugitives by an Indian court.
Congo’s Inga agency did not respond to inquiries about the allegations involving Natural Oilfield’s founders.
The change in leadership for the development of the world’s largest hydropower project underscores the complexities and challenges tied to such ambitious endeavors. Despite facing setbacks, the demand for sustainable energy solutions remains pivotal in meeting the escalating energy demands across the globe. Only time will unveil the future of the Grand Inga project and its potential to deliver clean, renewable energy on a worldwide scale.