The ratification of the bilateral cooperation signed between Cameroon and Equatorial Guinea in March this year would pave the way for the exploitation of the Yoyo –Yolanda cross-border gas field.
Recently, Bill No. 2041/PJL/AN was tabled in Parliament and defended by the Minister of Mines. It seeks to authorise the President of the republic to ratify the bilateral cooperation agreement between the government of the Republic of Cameroon and the government of the republic of Equatorial Guinea for the exploitation of cross-border oil and gas fields signed in Yaounde on 17 March 2023. Article 18 of the agreement stipulates that ratification by each state is the precondition for its entry into force and for finalising exploitation agreements which are already under negotiation. The agreement provides the legal framework for both states to jointly develop all cross-border oil and gas fields. It will enable Cameroon and Equatorial Guinea to establish the tax and customs as well as the exchange rate regime applicable to the resources involved. The agreement also addresses issues relating to local content, health, security and environment protection.
It is worth noting that ratifying this agreement is definitely important for Cameroon as it will in the short term pave the way for the development of the Yoyo –Yolanda cross-border gas field, 84% of which is in Cameroon and 16% in Equatorial Guinea. The agreement will also increase Cameroon’s gas production, with a view to optimising development and operating costs. Expected investments are estimated at 4billion dollars. Earnings from production and the creation of numerous jobs are also amongst the spinoffs of the major project.
Cameroon benefits tremendously from its oil and gas reserves. According to a report by SNH in 2022, Cameroon has natural gas reserves estimated to be 4.8 billion cubic feet. Much of this gas remains undeveloped. In the meantime, Cameroon continues to concentrate on upstream and downstream activities.
The production of Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) in Cameroon was expected to increase sharply over the fourth quarter of 2022. According to forecasts by the Bank of Central African States (Beac), LNG production would rise by 42 percent QoQ while the volume of LPG would increase by 82 percent compared to the previous quarter. While increase in production of gas is good news for markets, more still has to be done to satisfy the ever growing demand.
Claudette CHIN
