Société Nationale des Hydrocarbures, the National Hydrocarbons Company of Cameroon (SNH) and Franco-British Perenco Oil renegotiate the terms of the contracts of the Moudi and Ebome oil fields. The current agreement that is due to expire in 2021 will be converted into Production Sharing Contracts (PSC), per the nation’s petroleum code.
Both stakeholders have been looking to establish new types of contracts in 2021 and have held several meetings between the end of February to mid-May to this end. The new conversion will be like the partnership that link both parties on the “Moabi” field.
A signed presidential authorisation on January 8, 2019, states that Perenco has a 75% share while the SNH has a 25% share. The contract is for 20 years. At the request of the concerned company, the authorisation can be renewed only once, for 10 years.
Under the terms, Perenco, within the framework of the exclusive “Moabi” operating license is to provide the country with $150,000 annually during the development and exploitation phases for the vocational training of citizens of Cameroon of all qualification not forming part of its staff, in the petroleum field.
A statement by SNH read, “The Perenco delegation, led by its CEO, Adrien Broche, met with the members of the Standing Committee for the negotiation of oil and gas contracts, on the terms of conversion of establishment agreements and association contracts for the fields Moudi and Ebome.”
SNH said the previously signed contract expiring next year was in accordance with the laws of 1964, but as of next year, the contracts must be converted into Production Sharing Contracts, per the provisions of the Cameroonian petroleum code.
Perenco has been in operation in Cameroon since 1993 in collaboration with the National Hydrocarbons Company. It also manages four shared production contracts, with three already in production. They are Bolongo, Dissoni and Moabi, while the other remains at an exploratory stage in the Rio Dey Basin.
The producing operations of the firm in the country are based around concessions in Rio del Rey, Moudi and Ebome.
/strong%20and%20Franco-British%20Perenco%20Oil%20renegotiate%20the%20terms%20of%20the%20contracts%20of%20the%20Moudi%20and%20Ebome%20oil%20fields.%20The%20current%20agreement%20that%20is%20due%20to%20expire%20in%202021%20will%20be%20converted%20into%20Production%20Sharing%20Contracts%20(PSC),%20per%20the%20nation's%20petroleum%20code.Both%20stakeholders%20have%20been%20looking%20to%20establish%20new%20types%20of%20contracts%20in%202021%20and%20have%20held%20several%20meetings%20between%20the%20end%20of%20February%20to%20mid-May%20to%20this%20end.%20The%20new%20conversion%20will%20be%20like%20the%20partnership%20that%20link%20both%20parties%20on%20the%20“Moabi”%20field.A%20signed%20presidential%20authorisation%20on%20January%208,%202019,%20states%20that%20Perenco%20has%20a%2075%%20share%20while%20the%20strongSNH/strong%20has%20a%2025%%20share.%20The%20contract%20is%20for%2020%20years.%20At%20the%20request%20of%20the%20concerned%20company,%20the%20authorisation%20can%20be%20renewed%20only%20once,%20for%2010%20years.Under%20the%20terms,%20strongPerenco/strong,%20within%20the%20framework%20of%20the%20exclusive%20Moabi%20operating%20license%20is%20to%20provide%20the%20country%20with%20$150,000%20annually%20during%20the%20development%20and%20exploitation%20phases%20for%20the%20vocational%20training%20of%20citizens%20of%20Cameroon%20of%20all%20qualification%20not%20forming%20part%20of%20its%20staff,%20in%20the%20petroleum%20field.A%20statement%20by%20SNH%20read,em%20“The%20Perenco%20delegation,%20led%20by%20its%20CEO,%20Adrien%20Broche,%20met%20with%20the%20members%20of%20the%20Standing%20Committee%20for%20the%20negotiation%20of%20oil%20and%20gas%20contracts,%20on%20the%20terms%20of%20conversion%20of%20establishment%20agreements%20and%20association%20contracts%20for%20the%20fields%20Moudi%20and%20Ebome.”/emstrongSNH/strong%20said%20the%20previously%20signed%20contract%20expiring%20next%20year%20was%20in%20accordance%20with%20the%20laws%20of%201964,%20but%20as%20of%20next%20year,%20the%20contracts%20must%20be%20converted%20into%20Production%20Sharing%20Contracts,%20per%20the%20provisions%20of%20the%20Cameroonian%20petroleum%20code. a%20href=https://ibekachikwu.com/wp-content/uploads/2020/08/71854559-f3c7-462a-a0e0-659cef292ab8.jpgimg%20class=size-medium%20wp-image-2559%20alignleft%20src=https://ibekachikwu.com/wp-content/uploads/2020/08/71854559-f3c7-462a-a0e0-659cef292ab8-300x200.jpg%20alt=%20width=300%20height=200%20//astrongPerenco/strong%20has%20been%20in%20operation%20in%20Cameroon%20since%201993%20in%20collaboration%20with%20the%20National%20Hydrocarbons%20Company.%20It%20also%20manages%20four%20shared%20production%20contracts,%20with%20three%20already%20in%20production.%20They%20are%20Bolongo,%20Dissoni%20and%20Moabi,%20while%20the%20other%20remains%20at%20an%20exploratory%20stage%20in%20the%20Rio%20Dey%20Basin.The%20producing%20operations%20of%20the%20firm%20in%20the%20country%20are%20based%20around%20concessions%20in%20Rio%20del%20Rey,%20Moudi%20and%20Ebome.){kind=link}