13 Nov Cameroon set to explore new oil basins in the North and in Bakassi
Over the 2020-2030 decade, the Cameroonian government has decided to develop its oil potential by positioning the National Hydrocarbons Company (SHH) as a benchmark strategic operator in the hydrocarbons-refining-petrochemicals sector, reports Investir in Cameroon .
To this end, we learn from the National Development Strategy (SND) 2020-2030, Cameroon will “ develop, directly through the SNH and through association agreements with international partners, the exploration and assisted recovery on current productive basins, and ensure that the potential of new onshore basins in the North is fully explored ”. It will also be necessary to “ update and enhance the oil potential of the Bakassi peninsula “.
The exploration of new onshore basins in the northern part of the country and in Bakassi (territory once disputed by neighboring Nigeria, but returned to Cameroon by international justice), indicates the SND, will allow Cameroon to maintain the flow of its oil revenues. ; step up exploration efforts to increase reserves, maintain and increase production.
This forward-looking position has been adopted by Cameroon in a context where specialists estimate that the country’s oil production has been experiencing a downward trend for many years. According to an economic analysis note from the French Embassy in Cameroon, dated November 2019, this oil production, which peaked at 185,000 barrels / day in 1985, only amounted to 69,000 barrels / day in 2018. Over this period, the contribution of the oil sector to GDP increased from 14.5% to 4.7%.
According to Perenco, quoted by the French Embassy note, Cameroon’s natural production decline is around 20% per year. However, it is slowed down thanks to specific processes that the Franco-British firm implements and which allow oil to be extracted from mature fields, with significant investments ($ 800 million in 2019 after $ 750 million in 2018 ).