The evolution of the World’s economic landscape obliges countries to readjust policies and actions. This state of affairs readily indicates that no economy can claim to be independent of the other.

The Chad-Cameroon Pipeline is trapped in the web of such an evolution and is compelled to revisit certain agreements reached in 1993 in prelude to the construction of the over 1000 kilometre pipeline from the Chadian oil fields to the seaside town of Kribi.

At that time, a barrel of crude oil sold at 15 dollars. Today the same quantity of oil fetches 114.93 dollars indicating a significant jump of 667 percent.

Negotiations on the transit royalties to be paid by Chad for using Cameroonian territory have since remained unaltered. And so, for every barrel of crude transported, 0.41 dollar is paid to Cameroon. In other words, about 2.7 percent of each barrel transport was to be paid as royalties. The evolution in the price of the black gold on the World market (114.93 dollars a barrel) has worked in favour of Chad at the detriment of Cameroon. Instead of paying 2.7 percent of the amount sold per barrel to Cameroon, the latter present receives 0.4 percent of the revenue from each barrel sold. In the real sense of the word, Cameroon is losing 2.3 percent from each barrel sold on world market price.

That notwithstanding, there is a glimmer of hope in the air considering the promises made by the Cameroon Oil Transportation Company (Cotco) that manages the project. COTCO, Guillaume Emmanuel Kwelle, Public and Government Manager, assures, is examining Cameroon’s complain. Even though no specific date has been given for the problem to be cleared, this remains an important issue. Pending the solution that could likely come out from the new agreement, authorities in the oil sector ought to ponder deeply on what has happened.

Without very much digging into the terms of the negotiations in 1993, what is happening today readily shows that some important aspects were left out during the deal. On basis of this, the question on every lip is whether those on the negotiating table took into consideration the fact that nothing is static when it comes to the economy. This is s serious element that must be corrected when a new agreement comes up. Royalties to be paid should perhaps be negotiated on a percentage basis, so that everyone shares in the profit and the loss of the market.