Critics fear the legislation doesn't do enough to prevent abuses or ensure average Congolese see the benefits of oil revenues
* Congo oil code adopted by lawmakers, awaits president
* Congo produces 25,000 bpd, plans to boost output
* Oil sector considered poorly-regulated and opaque
* Analysts say vague code provisions subject to abuse
By Aaron Ross
GOMA, Democratic Republic of Congo, July 17 (Reuters) - A new hydrocarbons law awaiting presidential approval in Democratic Republic of Congo imposes a much-needed structure on a haphazardly regulated oil sector but critics say its vague provisions open the door to corruption and secrecy.
The 53-page bill, passed by parliament last month, includes steep new taxes on capital gains, increases the state's role in exploration and production projects and clarifies the tendering process for new permits.
Congo pumps just 25,000 barrels of oil per day, but hydrocarbons already contribute nearly half a billion dollars in annual state revenues.
The new code, which would replace a 1981 law widely considered obsolete, is with President Joseph Kabila for his signature.
In remarks after its adoption on June 15, the president of the National Assembly, Aubin Minaku, said the bill would ensure transparency and protect investments in the sector as well as contribute to the fight against poverty.
The vast central African country, Africa's largest copper producer, has failed to reap significant benefits from its huge natural resource reserves, ranking 186 out 187 countries on the U.N. Human Development Index.
Experts agree new legislation is badly needed to bring order to a sector expected to grow considerably with the government expecting production to ramp up off the Atlantic coast and near its eastern border with Uganda.
Permits are currently granted through production sharing agreements with the government or special conventions, which analysts say lack meaningful oversight and have often helped line the pockets of corrupt officials.
Georges Bokundu, Congo coordinator for Southern Africa Resource Watch, said passage of a hydrocarbons code represented a first step towards regulating the sector, though the application of the law would need to be closely scrutinised.
"No law will be perfect," said Bokundu. "We must first start with a law that can lead to the development of the country."
Bokundu said it was reasonable to envisage a 10-fold increase in production to 200,000-300,000 barrels per day, on par with neighbouring Republic of Congo.
An oil company owned by Israeli billionaire Dan Gertler says research and exploratory findings suggest two exploration blocks it controls near the Ugandan border contain reserves of close to 1.5 billion barrels of oil.
French oil giant Total and the South Africa-based SacOil are also exploring in northeastern Congo.
DOUBTS
Critics of the legislation fear it does not do nearly enough to prevent abuses or ensure average Congolese see the benefits of oil revenues. Campaigners have strongly criticised the drafting process, begun in 2011, which they say was secretive.
Parliament's adoption has done little to clear up matters.
Eight lawmakers contacted this week by Reuters - from both majority and opposition parties - said they had not seen the bill. Only Minaku and a senator involved in the final negotiations said they had seen the final version.
The hydrocarbons minister's chief of staff, Jean Muganza, said that the ministry did not have a copy.
Yvonne Mbala, Kinshasa director of the Anglo-French oil and gas company Perenco, Congo's only active producer of oil, told Reuters she has not yet seen a copy of the bill either.
Analysts with whom Reuters shared the text said it contained several welcome provisions, including a requirement that the government hold public tenders for exploration and exploitation permits and publish the names of bidding companies.
However, the law is often vague and leaves crucial decisions subject to ad hoc actions by government officials, they said.
"The law appears to leave key issues, such as criteria for bidding companies, to the discretion of the oil minister without providing any real checks on his decisions," said Peter Jones, a campaigner at London-based Global Witness.
Jones also said the law leaves open the possibility of drilling in national parks, something conservation groups vigorously oppose.
Minaku said Kabila was free to "retouch" the law before signing. The president has previously used that prerogative to introduce significant changes to legislation, including an agriculture code in 2011.
Muganza declined to respond to criticisms of the code, saying he did not want to engage in speculation before the president signs the law.
Christoph Wille, Congo analyst at Control Risks, said the code, as well as the general confusion around its status, could erode investor confidence in the hydrocarbons sector.
"The lack of effective consultations and transparency in the revision process has contributed to a perception that the government is not serious about reforming the sector, improving its management and reducing corruption," he said. (Editing by David Evans)
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