Statistics from the National Hydrocarbons Corporation (NHC) show that oil production in Cameroon in 2011 stood at 21,700 million barrels and contributed FCFA 539,236 billion to the State treasury. Stakeholders are intensifying exploration work with the view to stepping up production so that the sector can ably give the needed push to the country’s socio-economic development.
Against this backdrop, government and Kosmos Energy Cameroon HC, a filial of Kosmos Energy Ltd, yesterday January 12, signed a production sharing contract for oil exploration on the Fako Block, a virgin block that wraps around the foot of Mount Cameroon and which spans through Douala/Kribi-Campo and the Rio del Rey Basins covering a surface area of 1,289 square kilometers. The Minister of Industries, Mines and Technological Development, Emmanuel Bonde, and NHC Executive General Manager, Adoplhe Moudiki, signed for Cameroon while Kosmos Energy Cameroon HC’s Vice President and Country Manager, Christopher Stone, signed for his company.
According to the terms of the contract, Kosmos Energy HC will in six years undertake a work programme on the Fako Block in three phases of two years each renewable as per the prescriptions of the Petroleum Code. This, among others, consists in carrying out geoscience studies, acquiring gravity gradiometric and magnetic data as well as studies for the initial phase of two years. It will also acquire, process and interprete 100 km of 2D seismic data or the drilling of one exploration well during the second phase as well as the drilling of an exploration well during the third phase. The work programme has a corresponding investment estimated at 18 million US Dollars (about FCFA 9 billion). Records show that the block has oil and gas potentials. Yesterday’s contract was the 17th signed thus far within the framework of the application of the law No. 99/013 of December 22, 1999 on the Petroleum Code.
Speaking to the press after the ceremony at the NHC head office, Christopher Stone said the contract is another step for his company as well as the country’s oil production. “All along, all our efforts here have been on-shore along the coast. We are looking at an opportunity all the time both for on and off-shores. We believe Cameroon is a good place to invest. We have a big reservoir of experience on oil and gas along the coast of West Africa”, he said.
Kosmos Energy Ltd, the ultimate Parent Company of Kosmos Energy Cameroon HC, is a leading independent oil and gas exploration and production company focused on frontier and emerging areas in the West and North Africa as well as in South America. Exchange of gifts and a group photo spiced the ceremony.
