Cameroon: Murphy Oil Production Sharing Contracts Signed For 4 Blocks

• On November 11, 2026, Cameroon signed four Production Sharing Contracts with Murphy Oil Corporation in Yaoundé.
• These contracts cover the Etinde Exploration, Tilapia, Ntem, and Elombo blocks in the Douala/Kribi-Campo basin.
• The agreements aim to boost national hydrocarbon production and support Cameroon's industrial development.
• Since the 2019 Oil Code, Cameroon has now signed a total of seven Production Sharing Contracts.
• Murphy Oil's commitments include creating jobs, transferring skills, and integrating local businesses into the oil value chain.

Murphy Oil Corporation has committed to several key initiatives designed to benefit the Cameroonian populace, including the creation of both direct and indirect employment opportunities for Cameroonian youth, the effective transfer of essential skills and technologies, and the enhanced integration of local businesses and subcontractors into the oil value chain.

On Wednesday, November 11, 2026, the State of Cameroon formalized a significant energy partnership by signing four Production Sharing Contracts (CPPs) with the American oil corporation, Murphy Oil Corporation, in Yaoundé. This strategic alliance encompasses the Etinde Exploration, Tilapia, Ntem, and Elombo blocks, located within the promising Douala/Kribi-Campo sedimentary basin. The agreement is poised to inject new momentum into Cameroon's oil sector, marking a pivotal moment for the revitalization of the nation's hydrocarbon output.

The signing ceremony was overseen by Professor Fuh Calistus Gentry, the Interim Minister of Mines, Industry and Technological Development, representing the Cameroonian government. Key figures present included Nathalie Moudiki, Advisor n° 2, who attended on behalf of the Administrator-Director General of the Société Nationale des Hydrocarbures (SNH), alongside Daniel R. Hanchera, Senior Vice President, Business Development of Murphy Oil. The United States Embassy's Chargé d’affaires, ad interim, John G. Robinson, also witnessed the proceedings, underscoring the international significance of the collaboration.

These four Production Sharing Contracts represent the culmination of extensive negotiations conducted by the Permanent Commission for the Negotiation of Oil and Gas Contracts (CPNCPG). This commission, comprising experts from the SNH and various relevant public administrations, played a crucial role in shaping the terms of the agreements. The formalization of these contracts brings the total number of agreements concluded by SNH in 2026 to five, following an earlier accord signed on August 14 with OCTAVIA Energy for the Bolongo Exploration block.

Since the implementation of the new Cameroon oil code 2019 on April 25, 2019, Cameroon has now entered into a total of seven Production Sharing Contracts. This legislative framework, established in 2019, underpins the nation's efforts to attract foreign investment and manage its natural resources effectively. The Cameroonian authorities view the SNH Murphy Oil partnership as a testament to the renewed appeal of the country's mining domain to international investors, aligning with President S.E. Paul Biya's policy of energy sovereignty and responsible resource stewardship.

The primary objective behind these Murphy Oil Cameroon production sharing contracts is to reverse the natural decline observed in mature oil fields and to ensure a sustained increase in national production. This boost in hydrocarbon output is critical for supporting Cameroon's industrial development and achieving greater energy independence. The government's strategy aims to transform these Cameroun Murphy Oil CPP agreements into tangible field operations swiftly, with the ultimate goal of making significant commercial discoveries that will generate lasting economic growth for the nation.

Beyond the technical and financial aspects of exploration and production, the agreements place a strong emphasis on social considerations, particularly local content. Murphy Oil Corporation has committed to several key initiatives designed to benefit the Cameroonian populace, including the creation of both direct and indirect employment opportunities for Cameroonian youth, the effective transfer of essential skills and technologies, and the enhanced integration of local businesses and subcontractors into the oil value chain. This focus on Cameroon local content oil provisions underscores a broader commitment to ensuring that resource extraction contributes directly to national development and capacity building.

Lawyers advising energy companies in Cameroon should review the specific terms of these new Production Sharing Contracts (CPPs) and the 2019 Oil Code, particularly regarding local content obligations, employment creation, technology transfer, and integration of local businesses, to ensure compliance for current and prospective operators.

Source: Original reporting via Actu Cameroun.