A petroleum contract shall be concluded between the State and the applicant. It shall be negotiated on behalf of the State by a standing commission set up by a public body duly mandated to that effect, comprising representatives of the relevant ministries and those of the said public establishment or body.

The petroleum contract shall be signed:

(a) On behalf of the State, jointly by the Minister in charge of hydrocarbons and the legal representative of the public body duly mandated to that effect:

(b) On behalf of the applicant, by its legal representative.

The petroleum contract shall enter into effect on the date of its signature by the parties.

The petroleum contract shall be governed and interpreted in accordance with the laws of Cameroon.

The petroleum contract and its annexes A (geographical coordinates of the contractual area), B (accounting procedure), C (participation agreement) and D (letter of guaranty) which form an integral part thereto, shall determine:

(a) The area of the exploration authorization;

(b) The minimum exploration works programme which the holder undertakes to implement and the corresponding financial commitments which he undertakes to fulfil for the initial period of validity of the exploration authorization and for each renewal period;

(c) The contract duration and the different periods of validity of the exploration authorization, as well as the conditions for its renewal and extension, including the terms applicable to the reduction of the contract area:

(d) The obligations relating to a commercial discovery and the development of a commercially exploitable field:

(e) The terms and conditions for granting an exploitation authorization, its various validity periods and the conditions for its renewal and extension;

(f) The rights and obligations of the contracting parties:

(g) The works programme and the corresponding budget estimates, as well as the methods for supervising their execution;

(h) The rights and obligations of the holder regarding the transportation of the extracted hydrocarbons, subject to the applicable regulatory provisions;

(i) The rules relating to ownership of production and its sharing between the contracting parties etc.

Scroll to Top