Cameroon
Interview with
Mr. Inoni Prime Minister of Cameroon
The country’s potential for discovery of natural gas is significant
Cameroon maintains an embassy in the United States at
2349 Massachusetts Avenue NW, Washington, DC 20008 (tel.: 202-265-8790).
Historically, there has been a very strong relationship between public sector electricity demand and the growth of the GDP. They are obviously very closely intertwined. 
GDP fueling the demand for energy resources or the improved energy resources vital to improving the GDP of the Republic.

I think the two are related and connected to each other, If we want to increase our GDP the energy demand is going to be greater and so the production has to increase. At the moment, the total demand is between 600 to 700 mw. We are looking at producing about 1000 mw from next year. This is acceptable in the meantime, but in about five years from now, we might need 1500mw Therefore, we have to make sure that we increase our production.

The production today is still not sufficient even for domestic and industrial consumption. If we want to increase our industrial capacity, we have to increase the production of energy.  We are looking at building dams in Lom Pangar, Nachtigal and Memve’ele. These are going to take a few years to start functioning, so we are trying to put up a gas plant at Kribi to generate electricity. But the problem that we face is that most of the electricity that is produced in Kribi is required by the aluminum industry that is in Edéa. Almost half of what is to be produced is going to be consumed by this industrial unit. So, our energy demands will still not be completely met but we still hope that it will help us reduce the shortage that we are experiencing now.  By 2010, Memve’ele is supposed to be ready and by 2011-12, Nachtigal and Lom Pangar should be operational. Through these operations, we may cover our total needs but this is dependent on how much and how fast the economy grows and what demands of the industrial sectors are.

Obviously oil reserves in the country and untapped oil reserves have the potential of fueling the country’s future demand and there are also several wells identified in and around the Bakassi peninsula.
We have just come out of  a boundary dispute with Nigeria. We are happy that this issue has been finally resolved. We are now going to start exploration in the Bakassi area. There are stories about discoveries that have been made in Bakassi but there is no conclusive proof yet. SNH is signing contracts with some companies to carry out offshore and onshore explorations in the area and only after we receive the reports from these companies will we be able to ascertain whether there is oil in Bakassi or not. Tread a confidential report about five years ago that said that most of the countries around the Gulf of Guinea will increase their production but Cameroon’s production would be zero by 2015. Contrary to that, we are now hopeful that instead of being a net importer of oil, we will probably see some increase in our production. So, there is going to be a lot of exploration in the area but we cannot say for sure that discoveries will be made.

The oil and gas sector is completely liberalized and we welcome any company that wants to come here, if they respect the conditions. Today, we have five French companies here. We have Exxon, Texaco, Total and others. So, you can see that we are completely liberalized, One thing that makes us different from other countries of the region is that we have a long experience in this area. The kind of contracts that are signed between the oil companies and us do not have the same terms of agreement. Another fact is that our country is stable. Oil companies are huge multinationals who invest so much that they do not want to do so in unstable areas. Cameroon is attracting a lot of investment. People like to invest here because our policy is liberal and other factors are favorable and we have very good relationship with these companies.

The Port of Limbé is a very important project for us because the port of Douala is very expensive now. It is always silted and we have to dredge it all the time. Transportation is done with vessels that have certain capacities and some of those cannot get into Douala very easily. Getting smaller vessels into Douala is very expensive. We need a deep-sea port in Limbé or Kribi. Some years ago, there were studies done by an American company that placed Limbé in a good position as compared to the Ports of Togo and others in the region.

Limbé is well positioned because there is no silt here as it is in a volcanic area. If you have, for instance, a depth of 12 kilometers, it is 12 kilometers all the time. The depth is, therefore, never in doubt and this is the advantage of Limbé. The thought at that time was that Limbé would be a big port and serve as a hub for the central and probably western regions of Togo. This is still what we have in mind and that is why we have to build this port as soon as possible. We are working with a

company from Miami, Florida. It is not in conjunction with SNH but with the shipyard, CNIC. Eventually, there may be a railway link between Douala and Limbé. Let me also mention studies for the building of the port of Kribi are completed and we are looking for funding.

One of the primary objectives is that we want to diversify our resources. That is why we are trying to develop the bio-fuel project. Hydro electricity, for us, is cheap but the investment is heavy We are also going to use natural gas. We also want to improve the transportation network; that is, the transportation of energy from the source to the consumer. AES Sonel is working on the equipment that is 20-30 years old and needs updating. So, we have to modernize the equipments and improve on it. We also want to transport energy thereby reducing cost and making it available to the ordinary Cameroonian. We are working on a project with the Rural Electrification Agency with regard to solar energy we have proposals from certain companies. So, our priority is to diversify as much as possible.

The message is simple. Cameroon is in the region of Central Africa and occupies a strategic position. It is also the motor of the sub regional economy and enjoys stability.  Since our independence, we have been stable and this is crucial for development. I have always told people that Cameroon is “Africa in miniature”. It is a junction. It is also a cultural bridge.

Some people think that Cameroon is French speaking whilst others think that it is an English speaking country. It is neither!  It is Cameroon and that is it. We are the link between French and English speaking parts of Africa. There are people who think Cameroon is in West Africa whilst others think it is in Central Africa. This is the place to be. For any investor, all the prerequisites are here and there is no reason why people should not invest. The security risks are minimal and the economic advantages are there.

Cameroon’s Petroleum Resources:
Gas prospects, offshore opportunities, location are key assets
Geology
There are three significant hydrocarbon basins in Cameroon:
in the northwest is the offshore Rio del Rey Basin on the Niger Delta;
in the southwest is the offshore Douala / Kribi-Campo Basin,
and in the north of the country is the Logone Birni Basin.
The latest licensing round will be concentrating on the Douala / Kribi-Campo basin and the Logone-Birni Basin.

Douala / Kribi-Campo Basin
The Douala / Kribi-Campo Basin comprises part of the greater West African Margin Basin System and is the northernmost of series of genetically related basins that stretch from Walvis Ridge to Cameroon. The main source rock sequence in the Douala Basin is Lower Cretaceous in age. Turbidites and deep sea fan deposits comprise the Upper and Lower Cretaceous reservoir sequences, although in the latter fluvial and alluvial reservoirs have also been encountered. Shallow water deltaic Tertiary deposits are also potential reservoirs, in the shallow water areas of the basin.

Logone-Birni Basin
The Logone-Birni Basin comprises part of the West and Central African Rift systems. The main source rocks are the oil prone lacustrine deposits in the Lower Cretaceous Aptian-Albian rift fill. The Tertiary, Upper and Lower Cretaceous all have good potential for porous clastic reservoirs. This is based on information from neighbouring Doba, Termit and Doseo basins which contain predominantly coarse clastic sediments. The Lower Cretaceous is likely to have fluvial, lacustrine and deltaic sands, while the Upper Cretaceous is likely to have fluvial, marginal marine, lacustrine and shallow marine sandstones and the Tertiary, fluvial sands.

Oil Exploration and Production
As a result of its maturing oil fields, crude oil production in Cameroon has fallen in recent years to 67,000 barrels per day (bbl/d) in 2003, down from 84,800 bbl/d in 2000. Production is expected to fall to 50,000-60,000 bbl/d by 2005. If no major oil fields are discovered, current major oil fields will be depleted by 2010.

Exploration began in Cameroon in the 1950's, concentrated in the Douala Basin. Until 1965, Elf Aquitaine was the sole concessionaire. Later Mobil, Royal Dutch / Shell and Total also began to explore. With discoveries in Nigeria's Niger Delta area in the late 1960's, focus shifted from the Douala Basin to the Rio del Rey Basin , where in the 1970's a number of discoveries were made: Asoma, Bavo, Betika, Ekoundou, Kole, Kombo and Makoko. Production from the Rio del Rey Basin reached the peak of its production with 158,000 bpd but then started to decrease which then meant that exploration focus returned to the Douala Basin in the 1980's. This resulted in discoveries of condensate and gas: Batanga, Benda, M'Via and N'Koudou.

In the 1990's field development and production began in the Kribi-Campo area with the Ebome field coming on line in 1996. In 1998, Pecten, a Shell subsidiary, received the first loan of a $250 million line of credit from the International Finance Corporation (IFC) a subsidiary of the World Bank to develop oil fields in the Rio Del Rey basin.
Renewed interest in oil investment has led to exploration in all three of Cameroon ’s major petroleum basins. Cameroon has committed to privatization of its state oil company, the National Hydrocarbons Company (SNH). SNH engages in exploration and production in conjunction with several Western oil companies. In December 2002, Tullow Oil and Addax Petroleum Cameroon, Ltd. signed a contract with SNH for exploration in the Ngosso area of the Rio del Rey Basin.

In April 2005 Shell and Total E&P Cameroun were awarded new Production Sharing Contract in the offshore area of Rio del Rey by the Cameroonian Government. Total will operate the contract, in which the two companies have equal shares. The contract area adjoins other concessions operated by Total in Cameroon and covers 143 square kilometers.
In May 2005 EurOil Limited signed a drilling contract with GlobalSantaFe International Drilling Corporation ('GlobalSantaFe') to continue its offshore drilling campaign in Cameroon. EurOil has a 100% interest in the Etinde Permit, which comprises three contiguous blocks offshore Cameroon, subject to government participation, which is still to be negotiated. The agreement covers the drilling of two firm wells in the Etinde Permit. Provisional well locations have been identified, but these will be refined following the final interpretation of the new 3D seismic data acquired over the area.

Organisations (2)
Societé National des Hydrocarbures, Total Cameroon :  Facilities (48)
Bavo Asoma Field, Boa Bakassi Field, Chad Cameroon Pipeline, Ebodje Permit - Cameroon, Ebome Marine Permit - Cameroon, Ekoundou Field, KF Field - Cameroon, Kita Edem Field, Kole Export Terminal, Kole Marine Field - Cameroon, Kombe Permit - Cameroon, Kribi Field - Cameroon, Lipenja Field, Lokele II - Cameroon, Lokele III AA - Cameroon, Lokele III BB - Cameroon, Lokele III CC - Cameroon, Lokele III DD - Cameroon, Lokele III EE - Cameroon, MLHP 5 - Cameroon

Participating Organisations Energy Africa Ltd
Energy Africa owns a 40% stake in the Ngosso Area. Addax operates the concession with a 60% interest.
ExxonMobil Corporation has interests in several producing oilfields in offshore Cameroon.
Perenco  Through its subsidiary Perenco Cameroon S.A., Perenco has interests in several producing oilfields in Cameroon.
Shell International Ltd   Through its subsidiary Pecten Cameroon Ltd, Shell has several interests in producing oilfields in Cameroon.
Societé National des Hydrocarbures  SNH is the state controlled oil producer and exploration company.
TOTAL  Through it subsidiary, Elf Serepca, TotalFinaElf have interests in several producing oilfields in Cameroon.
The country’s potential for discovery of natural gas is significant
As oil and gas demand continue to grow two things will follow.
Discovered reserves will become more valuable
and incentives to explore for additional supplies will become increasingly attractive.
Though Cameroon’s proved oil and gas reserves, estimated at the beginning of 2008 at 200 million bbl by Oil & Gas journal, are modest on a worldwide scale, the country’s potential - especially for the discovery of natural gas—is significant. And Cameroon’s strategic plans are designed to exploit that potential to benefit its citizens, and local and international investors.  Compared with the previous year, oil reserves declined due to production and the absence of significant discoveries, while gas reserves increased. The Journal estimates 2007 production at 84,000 bpd, down about 4% from the year before, but a significant increase from 2004.
According to the US Energy Information Administration (EIA), Cameroon’s 2007 petroleum consumption was about 24,500 bpd, leaving more than 60,000 bpd for export. Exports have increased from a low of about 43,000 b/day 2004, according to ETA.

Because current oil production is modest and existing fields are declining, much of Cameroon’s petroleum story is about potential, especially potential of prospective natural gas deposits.

And much of the country’s petroleum promise lies offshore.
To convert potential to reality, plans are being developed to expand oil and gas exploration and production activity upgrade refining capacity and increase electricity generation capacity, all to fuel the country’s economic growth.

Significant natural gas prospects can help expand the country’s power generation capacity which stood at about 0.9 gigawatts in 2007, up from 0.6 gigawatts in 1995. And upgrading and expanding Cameroon’s single refinery can reduce dependence on imported light oil and meet growing product demand. The refinery’s capacity was about 42,000 b/d in 2007,

The oil challenge
Currently Cameroon’s oil production comes from fields in the later years of life and few new significant discoveries have been made in recent years.  In the case of Shell subsidiary Pecten Cameroon Ltd., which began development of oil fields in the Rio Del Rey basin, the decline in oil reserves is normal for production that is 25 years old, said Mr. Ruud Schrama, until recently President and General Manager, Pecten Cameroon.
The Mokoko-Abana has been producing for 25 years, as has the Rio del Rey operated by Total Cameroon. The opportunity to apply breakthrough technology in such fields is limited, said Mr. Schrama. “As production declines, of course, we evaluate the possible application of the latest advances in technology. However, the scale is fairly limited here. It’s not a place where we an experiment a lot”
“What we require is not rocket science, but sufficient barrel chasing.  We do that by getting people on the ground that are competent.” In doing so, Pecten has been able to slowly pick up production in its operating area. “By tweaking every valve, we have been able to increase production by about 10%.”

Despite some discoveries, Mr. Schrama sees no real evidence that a ‘game change’ is in store for Cameroon’s oil production.

“When you move from the southwest to the northeast of the country the reservoirs that contain oil become lighter and gassier.”
Farther north, more gas fields have been discovered than in the south.

“We are in a declining oil basin and we try to guard it properly” he said. “We try to ‘find’ the ever-smaller volumes which are still out there by re-interpreting reservoir models.”
However, in the long term—say out to 2020—it is possible that Cameroon would want to continue to produce oil from these fields, even after they have become sub-economic, because they enjoy strategic advantages, according to Mr. Schrama.
Since existing reserves are declining, it is important to find ways to develop smaller volumes. “Oil still has many years to go,” he said, “if we can manage the ever-smaller margins in a smart fashion.”

There is still some oil exploration activity and there may be opportunities at greater depths.
The business environment has also changed. 1998 was a bad year for oil prices, slowing industry activity “Everyone was looking at new prospects rather than the production of more barrels” said Mt Schrama. With today’s improved business environment, Pecten has been increasing investment levels, making use of the latest available proven technologies.
“Since 2006, we have drilled three wells after a drilling holiday of a couple of years. We are planning to drill additional wells next year.”
It is a challenge to make the business work in an environment where the oil fields are small and somewhat scattered, but still contain serious volumes.  “Being nimble here is the key to success,” said Mr. Schrama.

Bakassi prospects
With the resolution last year of a boundary dispute with Nigeria, exploration in the Bakassi peninsular area can begin, said Prime Minister Ephraim lnoni in a recent interview He expects significant exploration activity in the area.
“There have been hints of discoveries in the area, but no conclusive proof,” said Prime Minister Inoni. “Cameroon oil company Société Nationale des Hydrocarbures (SNH) is signing contracts with companies to carry out offshore and onshore explorations in the area. Only after we receive the reports from these companies will we be able to ascertain whether there is oil in Bakassi or not.”
Mr. Schrama discounts earlier speculation about oil in Bakassi, because the trend indicates a greater likelihood of gas in the area. “There is no indication from the trends, map, geology and the way development has progressed that there is a big oil field there, unless there is something at a different depth that baa not been tested in the last 10-15 years.”
Pecten does have a 25-year partnership with Total in these areas, and drilled a number of wells that it no longer operates. Volumes that have been identified have not been commercial with the exception of some production that is sent to a neighboring block or facility. The areas developed by Pecten and operated by Total in the north have not been very active because of the border dispute.
Strategies to reverse the oil production decline should include encouraging interest in a new round of exploration, said Mr. Ibrahim Talba Malla, Director General, Caisse de Stabilisation Prix des Hydrocarbures (CSPH). Exploration should be accelerated in Bakassi, he said, now that the border dispute is resolved.
Natural gas potential
Cameroon has recognized the potential of its natural gas resource for several years and recently has taken demonstrable steps through SNH toward its development.
Perenco Cameroon S.A., operates Sanaga Sud gas field, Cameroon’s largest. Development has been accelerated in order to provide natural gas to fuel a power plant in Kribi to be operated by power company AES-SONEL. Initially, the largest customer will be AluCam, Cameroon’s aluminum smelting company
“The Sanaga Sud field is not a field that a single party can develop with an adjacent scheme but requires gathering, collection and redistribution,” said Mr. Schrama.
Cameroon’s ambition is to develop its gas resources, fuel the power station, and have a significant volume left converted into liquefied natural gas (LNG). Potential gas supply is larger than that needed for expected power generation demand. Part of the excess will be converted into LPG and the remainder will go to an LNG facility in Equatorial Guinea.
“The challenge of this project is that it has to lean on so many players and depend on so many small fields to come on-stream. It is not a trivial project,” said Mr. Schrama.

Offshore activity highlights
Much of the opportunity for new discoveries in Cameroon lies offshore. And several companies have recently completed work and announced new plans.
Perenco’s exploration activities have been focused on the onshore Kombe-Nsepe license, with partners Kosmos Energy LLC and SNH, and on the deepwater Ebodje license, according to company information. Two prospects will be drilled on Kombe-Nsepe in 2009. A deepwater well on the Ebodje license has demonstrated the presence of all the elements of a hydrocarbon system, according to the company and discussions are ongoing to enable additional exploration investment in this play. Perenco is also evaluating a number of gas opportunities that may add value to the development of the Sanaga field.

Late last year, Noble Energy Inc. announced a new discovery on its offshore PH-77 license, between Cameroon and the international boundary with Equatorial Guinea. The license area contains a number of seismically identified prospects, according to the company.
Located in 1,732 ft (528 m of water), the well’s primary target in the Miocene was the YoYo-1. A high quality Miocene reservoir containing 95 ft (29 m) of net hydrocarbon pay was encountered in the YoYo-1 interval, the company said. Production tests yielded flow rates of 330 bpd condensate and 31 million cu ft/day (MMcfd) of natural gas, with production rates limited by test facilities. The interval was encountered at a depth of 8,425 ft (2,568 m). Additional appraisal work will be necessary to verify the aereal extent of the YoYo-1 discovery, the company said.
In a secondary, deeper target in the Paleocene, commercial hydrocarbons were not found, according to Noble Energy

Other participants in the PH-77 license area are SNH, and Petronas Carigali Overseas Sdn. Bhd., a wholly owned subsidiary of the Malaysian national oil company, Petronas.

Addax Petroleum Inc. planned to complete its first two exploration wells at the Ngosso block offshore Cameroon in the first half of 2008. The first of these wells, spudded in early March, targets the Odiong prospect. The company has extended its contract for the jack-up drilling rig Hercules 156, used on the first well, to early 2009 to support its accelerated exploration program.
Addax, with 60% interest, operates the 474 sq mile Ngosso license in the Rio del Rey Basin; Tullow Oil Co. holds 40%. The shallow water off northern Cameroon contains a number of small oil discoveries, and offers exploration opportunities, according to Addax.

The exploration well that had a gas kick last year while Bowleven plc’s wholly owned subsidiary EurOil Ltd., was drilling in Block MLHP 7 of the shallow water Etinde permit was abandoned after taking the kick. Primary objective was the gas/condensate bearing Isongo sands at a depth of about 10,000 ft (3048 m).
The kick occurred about 540 ft (165 m) above the highest expected target in the uppermost section of the Isongo. For safety reasons, and to develop a new well design using higher-rated equipment, the well was abandoned. In early February Bowleven signed a contract with Sedco Forex International Inc. to re-drill the IF exploration well with the jackup rig Trident IV Operations were scheduled to begin in late April or early May

A strategic pipeline
Aside from its petroleum and human resources, Cameroon benefits from the strategic value of the Chad-Cameroon pipeline. The pipeline is one of Cameroon successes in uniting international investment through the cooperation of two neighboring countries within central Africa.
Operated by Cameroon Oil Transportation Co. (COTCO), the pipeline transports oil from the Kome area and the fields located in Chad to Kribi, The oil is stored offshore near Kribi in a floating storage vessel where tankers load for export.
“COTCO’s role is to ensure that the pipeline works smoothly and reliably,” said Jacky Lesage, General Manager, COTCO.
Design capacity of the line is 225,000 bpd. In mid 2007, throughput was close to 110,000 bpd. At that time, Mr. Lesage expected throughput to increase by end of the year 170,000-180,000 bpd as a result of some new fields being brought into production in Chad.
Along with petroleum products, the pipeline also carries a fiber optic system for high-speed communication.
“When we laid the pipeline, we felt the need for the fiber optics to be installed and decided to include 12 fibers for exclusive use of the Cameroon government,” said Mr. Lesage. “Installing 1,000 km of fiber optic is a significant achievement, and will constitute the back-bone of fiber optic infrastructure in Cameroon.”
The project also brought other infrastructure improvements, including roads in the north of Came Cameroon and bridges. Three of those bridges were turned over to the Government last year. Significant work was also done during the project to upgrade the railway and locomotive sectors, according to Mr. Lesage.
Some work also had been done on the Kribi airstrip during the construction of the pipeline in 2004 and the airstrip located in Belabo was refurbished.
Currently there are no expansion plans for the pipeline, but COTCO is open to opportunities to enhance its role in Central Africa. “For the time being, COTCO’s sole objective is to transport oil through the pipeline from Chad,” said Mr. Lesage. “This is part of the role of COTCO by law and is part of the Convention agreement.”  Should a new customer request access to the pipeline, it must be pursued though the legal framework. “We can work with any customer who asks us to transport oil through the pipeline,” he said.
In early 2008, COTCO had no plans to build a new pipeline, for example, to link the existing line with Gabon or Nigeria. But if another pipeline is built and linked with the Chad-Cameroon pipeline under existing agreements, of course, COTCO would accept the new customer, said Mr. Lesage.
do not have the ability or willingness to design, develop and implement another pipeline,” said Lesage.
The Chad-Cameroon pipeline has also been a benefit to Cameroon’s economy.  In 2006, COTCO spent a substantial US$40 million locally The company spends close to $600 million locally in Cameroon each year, according to Mr Lesage.
Most of this pays contractors that work for the pipeline. In addition, COTCO also pays a transit fee to Cameroon, which in mid 2007 had reached about $80 million since the beginning of the operation. “But I call that our modest contribution, as part of the oil industry within Cameroon,” said Mr Lesage.
COTCO has a number of international partners that are concession operators in Chad, there are three: ExxonMobil Corp., Chevron Corp. and Petronas. The other partners are the Republics of Chad and Cameroon, “I also consider the World Bank and other lenders to be partners,” said Mr Lesage. The World Bank was a key driver of the project; nothing would have happened if the World Bank had not approved the project, he said.  “In total, there are 18 lenders. These ‘partners’ are very important, even if they are not shareholders.”
High Quality Exploration Opportunities:
SNH and its partners intensify exploration, plan emphasis on gas development
Global energy demand will bang new opportunities for countries that have significant oil and gas prospects, and a strategy that is grounded in market realities.  In this environment, the Republic of Cameroon has the potential to play an important role in the world energy markets, while it fuels the growth of its own economy and advances the living standards of its citizens.
In his year-end speech Last December, Cameroon President Paul Biya described the countrys’ goal this way:
“Our most urgent challenge should be to increase energy supply in order to meet the increasing needs of the population and the demand of enterprises.”
Today’s Republic of Cameroon enjoys a stability that will facilitate the further development of its petroleum industry According to the US. Energy Information Agency Cameroon’s’ economy has grown steadily since the mid 1990s’ and 2005, the real GDP growth rate was 2.6%.
Experience in producing hydrocarbon resources, tempting exploration prospects, and a strategic Location together provides a promising future for oil and gas development in Cameroon.

SNH has key role
Central to the country’s future is its national oil and gas company, Société Nationale des Hydrocarbures (SNU). The company engages in partners with international oil companies, assists the government in its financial relations with private oil firms and is responsible for selling the government’s share of oil output. SNH also holds stakes in companies involved in downstream activities and in non-oil related activities.
The company fully shares the priority described by President Paul Biya, said Adolphe Moudiki, SNH Executive General Manager.
One of its key roles will be to guide Cameroon’s’ locus on natural gas. To that end,
the SNH Board of Directors in June created a Gas Directorate to implement the Master plan for the development of gas resources. A key project is the construction of a gas plant at Kribi, of which SNH is a stakeholder. In 2006, Perenco Cameroon S.A signed a 25-year contract with SNH to develop the offshore Sanaga Sud natural gas fields in the Douala-Kribi-Campo basins to supply gas to generate power at the Kribi plant.
Perenco’s conceptual studies for the development of the Sanaga Sud fields have been completed. Preliminary engineering will be complete by the end of this year, and gas is expected to be available for the plant in the first quarter of 2009, said Mr Moudiki.
The contribution of SNH to Cameroon’s economy is significant. In the first quarter of 2007, the company income exceeded projections by 13.4%, according to Mt Moudiki. For the period, SNH transferred 119,943 billion Francs CFA to the public Treasury not including taxes.
Crude oil production during the period dropped slightly due to operating problems.


Sindeau Jean Bernard, Minister of Energy and Water
Strategic and Tactical Objectives:
Upgrade infrastructure and enhance quality of life
In addition to expanding exploration, increasing refining capacity and adding power generating capacity, Cameroon’s strategic and tactical plans also have strong components aimed at improving transportation and communication networks.
Expanding the social, health and environmental protection programs that are already underway will also be keys to the country’s economic future.
All these efforts will be facilitated by an increasingly stable business environment that welcomes investment.
Energy water and e1ectricity are crucial to economic development, said Sindeau Jean Bernard, Minister of Energy and Water “This Ministry will play a key rote in all these aspects of the fight against poverty” he said.
Minister Bernard is also interested in the development of renewable energy technologies. In addition to having less impact on the environment, these technologies could be especially important in remote areas where localized production units could make energy more easily available.


Mr. Ibrahim Talba Malla, Chairman, Cameroon Petroleum Depot Co. (SCDP)
Current business structure
World Bank guidelines have suggested more privatization for industry in Cameroon.
Cameroon Petroleum Depot Co. (SCDP) was one of the first companies to be considered for privatization, according to Mr. Ibrahim Talba Malla, Chairman,
Currently, the Cameroon government owns 51% of SCDP and private ownership is 49%. “Even if we sell 5%, 1 think the private sector can run the SCDP more efficiently,” said Mr. Malla. He notes that Cameroon’s refining company Société Nationale de Raffinage (SONARA), is different; state entities have 72% of SONARA. “1 think that is too high,” said Mr Talba Malla.

The older of two frameworks for foreign participation in Cameroon is petroleum business, the tax-royalty model, is outdated, said Pecten Cameroon Ltd.’s Mr. Ruud Schrama. The new production sharing contract regime established by the 1999 petroleum code, allows the contractor to begin development as soon as commercial discoveries are made. Most of Pecten’s businesses are in the tax-royalty regime in which the “contractor” runs the day-to-day business but the stare, through Société Nationale des Hydrocarbures (SNH), has a 50% share in the partnership.
“We are in daily contact (with SNH),” said Mr. Schrama. SNH does have shares in Pecten, but the focus of the state company as it governs on behalf of the Republic is primarily on SNH’s 50% of the entire portfolio instead of its 20% share of Pecten, he said.