With the nature of investment involved in the petroleum industry and the impact of its activities on the natural environment, there is an obligation for petroleum companies in Cameroon to observe the compulsory insurance and civil liability program set forth by the government.

A holder of a petroleum authorization or contract and their sub-contractors shall be bound to take out insurance policies with local insurance companies to cover civil liability and damages resulting from the conduct of petroleum operations.

The petroleum contract shall lay down the terms and conditions for guaranties and insurance policies which the holder is bound to take out for the state, third parties, the public and the environment.

Holders of a petroleum authorization or contract who due to their actions or that of their sub-contractors, cause any physical, material or environmental damage shall without need of proof of fault be subject to civil liability when such damage is related directly or indirectly to the conduct of petroleum operation related activities or facilities located within and outside the contract area. Failing reparation in kind, the compensation paid shall fully repay the damage caused.

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