Cameroon, Octavia Energy Sign Bolongo Offshore Block Production Sharing Contract

Cameroon signed a production sharing contract with Octavia Energy Corporation for the Bolongo offshore block, committing the company to an exploration program that could reach at least $41 million. The contract was signed on August 14 at the headquarters of the National Hydrocarbons Corporation (SNH) in Yaounde, following the completion of negotiations earlier this month. It moves the 381.56-square-kilometre block into the exploration phase and sets terms covering State participation, taxation, local skills development and production sharing. Under the minimum work program, Octavia will initially spend at least $1 million over three years on seismic data reprocessing and geological and geophysical studies. Depending on the results, the exploration authorization can be renewed twice for two-year periods, with each renewal carrying a commitment to drill an exploration well estimated at $20 million. If both renewal periods are exercised, total minimum exploration commitments would reach $41 million. The contract also sets out the economic terms governing any future production. Up to 70% of ...