ConocoPhillips: Cameroon LNG Project Shifts to Equatorial Guinea

• ConocoPhillips, an American energy firm, planned a 600 billion FCFA LNG plant in Cameroon but shifted its focus to Equatorial Guinea after failing to secure a meeting with the Head of State in 2024.
• This move could cost Cameroon approximately 3,000 potential jobs and result in Equatorial Guinea collecting 20% of revenues from Cameroonian gas processed there.
• The Yoyo-Yolanda transboundary gas field, shared with Equatorial Guinea, is central to these developments, with expert advice urging Cameroon to build its own liquefaction facility.
• Internal governance issues at the SNH, including a scandal involving trusted officials and subsequent controversial promotions, have created significant challenges for the institution.
• The situation has reportedly led to an open conflict between the Presidency and the SNH, with Franck Emmanuel Biya recently showing renewed interest in the SNH's affairs.

The potential loss of nearly 3,000 jobs and the prospect of Malabo collecting 20% of gas revenues underscore the significant economic and strategic implications for Cameroon.

Cameroon recently saw a significant investment opportunity in its liquefied natural gas (LNG) sector pivot towards Equatorial Guinea, following an unsuccessful attempt by a major American energy firm to engage with the Cameroonian leadership. ConocoPhillips, a Houston-based multinational specializing in oil and gas exploration, production, and LNG activities, had expressed keen interest in establishing an LNG production facility within Cameroon.

In 2024, a delegation from ConocoPhillips arrived in Cameroon with plans to construct a new natural gas liquefaction plant, representing an investment exceeding 600 billion FCFA. The company, which operates globally in countries such as the United States, Norway, and Australia, intended to spend a week in the country. However, despite their substantial proposal, the delegation reportedly departed for Equatorial Guinea after failing to secure an audience with Cameroon's Head of State even a month after their arrival.

This development has significant implications for the Yoyo-Yolanda transboundary gas field, which lies between Cameroon (Yoyo) and Equatorial Guinea (Yolanda). The field's exploitation prospects had gained new momentum following a convention signed between the American giant Chevron, Cameroon, and Equatorial Guinea. With ConocoPhillips now focusing on Equatorial Guinea, Cameroon may be compelled to process a portion of its gas from the Yoyo field in its neighboring country.

The redirection of ConocoPhillips's investment carries substantial economic consequences for Cameroon. Estimates suggest that the country could forfeit nearly 3,000 potential jobs that would have been created by the proposed LNG plant. Furthermore, if Cameroon's gas is indeed processed in Equatorial Guinea, Malabo stands to collect approximately 20% of the revenues generated from the transformed gas.

In light of this strategic shift, Mouthe Ambassa, an international expert and consultant in the oil and mining sector, has advised the Cameroonian government to prioritize the construction of a domestic liquefaction plant. This recommendation underscores the critical need for Cameroon to develop its own infrastructure to capitalize on its gas resources, particularly given the evolving production landscape from existing facilities like those associated with Perenco and the Hilli Episeyo floating LNG vessel.

The backdrop to these external investment challenges includes a period of internal strife and governance issues within the National Hydrocarbons Corporation (SNH). The Glencore scandal, which emerged while former Justice Minister and Civil Cabinet Director Adolphe Moudiki was ill, initially saw him deny any involvement by his department. However, after gathering further information, Moudiki himself reportedly referred the matter to the Special Criminal Court (SCC) to shed light on the case. Investigations by the SCC, later reported by Jeune Afrique, revealed that some of Moudiki's trusted associates were directly implicated in the scandal, which threatened to tarnish the SNH's strategically vital image. Despite reports of his declining health and his wife, a technical advisor, performing many official duties, Adolphe Moudiki remains the Director-General of the National Hydrocarbons Corporation (SNH), a position he has held since 1993. Curiously, individuals named in the SCC investigations subsequently received promotions, reportedly due to high-level directives, even ascending to general management positions at Tradex. This situation reportedly ignited an open conflict between the Presidency of the Republic and the SNH, a confrontation described as having catastrophic consequences for Cameroon. Amidst these developments, Franck Emmanuel Biya reportedly revisited the SNH file during President Paul Biya's recent stay in Geneva, following his earlier involvement in 2023 when he was asked to advocate for Savannah in a bid to acquire Cot's shares while in Chad.

Source: Original reporting via Actu Cameroun analysis