Oil & Gas
Oil production began in 1977 and reached its peak in 1985, at 186,000bbl/day. This declined over the following two decades to 73,000bbl/day in 2009, according to the BP world energy survey. National oil company SNH reported total production of around 23Mbbl in 2010, compared to 32 Mbbl in 2004. Production is expected to increase slightly from 2012 as newly discovered wells come online (EIU 2011).
Against a backdrop of declining reserves and production, new exploration began in the 1990s. Recent technological advances allow for higher volumes of extraction and for the commercial viability of smaller discoveries. Reserves are mainly found offshore in the Rio del Rey Basin and the Douala Basin. Onshore discoveries of oil and gas have also been reported in the northern part of the country and the Douala Basin. Remaining liquid reserves were estimated at 180 Mbbl in 2009.
The main companies involved in oil production are TOTAL, Pecten/Shell and Perenco. Newer companies include Kosmos, Tullow and Bowleven, which are conducting exploration and more recent production projects. (Petroleum companies included in the EITI report for 2008 are Total Cameroon, Pecten Cameroon, Perenco Cameroon, Exxon Mobil Cameroon, SNH, Euroil Ltd., Addax Petroleum, Noble, Turnberry Resources INC, Tullow Cameroon Ltd., Sterling Cameroon Ltd., RSM Production Corporation and SONARA.)
Natural gas reserves in Cameroon are estimated at three trillion cubic feet, with the Logbaba gas field near Douala expected to begin production from its 200 bcf (billion cubic feet) at the end of 2011.
SNH (Société Nationale des Hydrocarbures) assists the government in financial relations with foreign oil companies. While it is only marginally involved in oil production, SNH manages the receipt and sale of the government's share of oil produced. SNH deducts costs related to its functioning then transfers all other funds received to the treasury. SNH publishes production and sales data on its website, with information from 2004 onward. It also holds (pdf) a participatory stake in some of the projects.
A complex production sharing system, combined with taxes, has led to a high percentage of government oil revenue when compared to other oil producing countries—between 67 and 70 percent of the value of oil exports (Gauther & Zeufack).
Cameroon is host to the Chad-Cameroon pipeline. Built in 2002, it is one of the largest infrastructure projects in the region and carries oil extracted in Chad to the offshore export terminal in Kribi, Cameroon. The government is a shareholder in pipeline operations on the Cameroonian side and by the end of 2010 it had collected $284 million in pipeline receipts since operations began in 2003. These figures are not yet included in Cameroon's EITI reports.
Cameroon has an oil refinery in Limbe, which was built in 1975. The refinery imports 90 percent of the oil it refines and is not currently equipped to refine the heavy crude Cameroon produces. Construction scheduled to begin in 2012 seeks to increase production capacity to four million metric tonnes each year and also to add the capacity to refine heavy crude. The refinery services the domestic and regional market.
Solid Minerals
Cameroon holds deposits of many minerals, including bauxite, cobalt, diamonds, gold, iron ore and uranium, among others. While the sector has been dormant for many decades, the state encouraged renewed mineral exploration in the 1990s, in large measure due to declining oil reserves.
Current production includes diamonds, bauxite and aluminium and gold. Produced amounts are low compared to the deposits. For example, annual gold production of 1800kg comes from artisanal mining (USGS 2008). This is expected to rise during 2012 and beyond as new diamond, cement, nickel, manganese and cobalt mining sites open. Further ahead, 2014-2015 is expected to see the commencement of large aluminium, bauxite and iron ore projects. Exploration by prospectors seeking commercially viable deposits are ongoing.
