For a long period, Cameroon’s economic expansion was generated by the oil sector, which was then the most dynamic sector of the country’s economy. The sharp rise in crude prices on the world market is a booster to the sector, despite the gradual depletion of oil deposits. Many businesses operate in the sector, including the production of crude petroleum oils, the main export product, as well as the sale of fuel and lubricants and production of crude oil.
1 – A more attractive legislative framework:
Cameroon implemented a number of measures aimed at making the contract and fiscal framework more attractive to oil companies, with a view to reviving exploration and encouraging the development of low-yield oil fields as a means of compensating for dwindling production.
Thus two types of petroleum contracts can be signed: the concession contract (CC) or the production-sharing contract (PSC). SONARA, the country’s lone oil refinery, sells 65% of its production locally.
2 – Gas: An opportunity to be seized.
It has been known for over twenty years that Cameroon possesses 160,000 million cubic meters of proven gas reserves in the Rio del Rey and Kribi basins. Unfortunately, these reserves are undeveloped for reasons of profitability and absence of markets. The load shedding that the country has been facing since 2002 due to a persistent shortage of electric power may provide a great opportunity for the development of existing gas deposits.