2.500
%
Neutral
101
mm boe
19
%
SNH is approachable and willing to work with all sizes of participant to generate interest in its O&G sector. The fiscal terms have been stable for a period and are not expected to change soon, hence our Neutral outlook.
February 16, 2024
Africa - Central
mm bbl
bcf
Central Africa, bordering the Bight of Biafra, between Equatorial Guinea and Nigeria.
PSC/PSA
Cameroon’s fiscal regime applicable to the upstream petroleum industry consists of Cameroon’s General Tax Code, the Cameroon Petroleum Code and individual PSCs or concession agreements. Cost recovery varies between 60-70%. Production remaining after cost recovery is divided between the NOC (SNH) and the contractor on a sliding scale, linked to the “R” Factor. The contractor is also liable for corporate income tax, and a range of bonuses, rentals and fees are payable.
Cameroon continues to implement an Extended Credit Facility from the IMF but has fallen behind on most of the reforms outlined in the agreement. In May, the IMF approved the disbursement of a $226mm Rapid Credit Facility to support the “urgent balance of payment needs” stemming from the COVID-19 crisis. There is a heightened threat of kidnap to western nationals in the north of Cameroon, including in the major cities and along the border between the Far North region and Nigeria. Boko Haram has publicly threatened Cameroon with attacks and further kidnappings due to Cameroon’s involvement in the regional fight to counter Boko Haram.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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