The 2015-2017 reforms are ongoing. Meantime, the company pumped FCFA 99.6 billion into the public treasury between January and April 2015.

Activities of the National Hydrocarbons Corporation, NHC, between the months of January and April 2015 fetched FCFA 99.6 billion to the State coffers despite the hostile economic environment marked by a free fall in the prices of crude oil throughout the exchange market for over a year. The amount transferred to the State Treasury was after deductions of production costs, on an annual forecast of FCFA 264.25 billion. Notwithstanding, government expectations from the company are high, given that the petroleum sector should generate revenue estimated at FCFA 774.9 billion, following an estimated contribution of FCFA 733 billion in 2014, representing 22.13 per cent of State income.

Reforms In Place

The Executive General Manager of the NHC, Adolphe Moudiki and his team has understood that success comes before a fall, and thus the need to multiply strategies to continue to generate substantial income for the State. The company has resolved to reinforce the strategy put in place to give best value to the national hydrocarbons resources. NHC has also understood that turning tides also requires the need to reduce production costs. Developing income-generating projects for Cameroon has also been outlined as a policy to meet the huge challenges of mobilizing revenue for the State.

The NHC boss disclosed that his company and her partner, Perenco, started discussions aiming at the installation of a floating liquefied natural gas plant in Cameroon, with an estimated capacity of 1.2 million tons a year. The production of Liquefied Petroleum Gas or cooking gas will be included, for an estimated capacity of up to 30, 000 tons a year. This, according to the NHC will undoubtedly increase national supply, which is presently in a deficit. Adolphe Moudiki however notes that the new project, which is distinct from the one which has been conducted since 2008 by GDF Suez, has nonetheless the same primary objectives of monetizing Cameroon’s resources through exports. The NHC boss disclosed that; “The liquefaction of natural gas extracted from the subsoil through a process involving condensation and cooling to -163°, turns gas into liquid and therefore permits its transportation by vessels for sale in the international markets. ” The project intent, is to open new outlets for national gas reserves, which were recently re-evaluated from 144 to 154 billion cubic metres. The resources, experts say, are higher than the needs identified for all the ongoing gas projects. The envisaged floating unit, going by the NHC, can be put in place without any influence on the supply of gas to the Kribi Thermal Power Station and the Douala-based industries, as well as the production of chemical fertilizers in Limbe and Liquefied Natural Gas at Mboro in the South Region of the country.

Bountiful Harvest

January to April activity results were positive. The Board of Directors of the NHC on June 2, 2015, in its first ordinary session for the year, was glad that the national crude oil production rose above 100,000 barrels per day for the first time since 2002. By April 30, 2015, it stood at 10.33 million barrels, showing an increase of 17.3 per cent. With regard to gas production, NHC reports that it increased by 4.77 per cent compared to same time last year.  Production stood at 4,548.6 million cubic feet, including 3,801.10 million barrels, showing an increase of 17.34 per cent. The quantities of crude oil sold on behalf of the State amounted to 6.54 million barrels, showing an increase of 29.75 per cent. Reports say the company supplied the Kribi Thermal Power Station with a total volume of 4,109.5 million cubic feet of natural gas. Another area that generated income to the State through the NHC was the Cameroon Chad pipeline, fetching FCFA 12.7 billion as transit fee during the first four months of the year, showing an increase of 86 per cent as compared to same period last year. The good news of the first four months of the year was the repayment to the International Bank Reconstruction and Development, IBRD of the 53.346 million UD Dollar loan (about FCFA 31, 886.9 billion) obtained to fund Cameroon’s participation in the construction of the Chad-Cameroon Pipeline.