Cameroon's SNH, Octavia Energy Sign Bolongo Oil Block Exploration Contract

• The Republic of Cameroon and Octavia Energy Cameroon SARL signed a Production Sharing Contract for the Bolongo oil block.
• The contract outlines a minimum seven-year program of work with a focus on seismic data reprocessing and geological/geophysical studies.
• The total financial commitment for the project is $41 million over seven years.
• The agreement follows recent negotiations between SNH and Octavia Energy Corporation Limited.

The contract outlines a minimum seven-year program of work, with a focus on seismic data reprocessing and geological and geophysical studies during the first three years.

On August 14, 2026, the Republic of Cameroon and Octavia Energy Cameroon SARL signed a Production Sharing Contract (PSC) for the exploration and exploitation of hydrocarbons in the Bolongo oil block. Located in the maritime zone of the Rio del Rey basin, the Bolongo block spans an area of approximately 381.56 square kilometers. The contract outlines a minimum seven-year program of work, with a focus on seismic data reprocessing and geological and geophysical studies during the first three years. Two additional two-year periods are planned, including the drilling of exploration wells at each stage. The total financial commitment for the project is $41 million over seven years.

The signing of the PSC marks a significant development in Cameroon's hydrocarbon exploration efforts. The contract was signed by Fuh Calistus Gentry, Minister of Mines, Industry, and Technological Development, in the presence of Adolphe Moudiki, Administrator-Director General of SNH, and Ahmed Nabil Hayel Saeed, President- Director General of Octavia Energy Corporation Limited. This agreement follows a recent announcement by SNH that it had reached an accord with Octavia Energy Corporation Limited for the exploration of the Bolongo block after several days of negotiations in Yaoundé.

The new exploration and exploitation agreement for the Bolongo oil block includes a significant financial commitment from Octavia Energy Cameroon SARL. Compliance officers and lawyers advising energy companies operating in Cameroon should take note of this development, as it may have implications for environmental regulations and project management. The project's potential impact on the local environment and community will be crucial to monitor. Lawyers and compliance officers should also consider the terms of the contract, including the financial commitment and the scope of work outlined.

Lawyers advising energy companies operating in Cameroon should note the new exploration and exploitation agreement for the Bolongo oil block, which includes a $41 million financial commitment over seven years. Compliance officers should also be aware of the potential environmental implications of this project.

Source: Original reporting via Actu Cameroun