SNH Murphy Oil Cameroon: Four New Production Sharing Contracts Signed

• SNH and Murphy Cameroon Exploration and Production signed four production sharing contracts on November 11, 2026, in Yaoundé.
• The agreements cover the Etindé Exploration, Tilapia, Ntem, and Elombo blocks for hydrocarbon exploration and exploitation.
• A financial commitment of $200 million (approximately 112 billion FCFA) is associated with these contracts.
• Murphy Oil is committed to a maximum seven-year research program for each contract, including seismic data reprocessing and geological studies.
• The contracts are implemented under Cameroon's Law No. 2019/008 of April 25, 2019, the new Petroleum Code.

The financial commitment associated with these agreements is substantial, estimated at $200 million, which translates to approximately 112 billion FCFA.

The Société Nationale des Hydrocarbures (SNH) and Murphy Cameroon Exploration and Production formalized four new production sharing contracts (CPP) on November 11, 2026, in Yaoundé. These significant SNH Murphy Oil Cameroon contracts are specifically designed for the exploration and subsequent exploitation of hydrocarbon resources across four distinct blocks: Etindé Exploration, Tilapia, Ntem, and Elombo. The financial commitment associated with these agreements is substantial, estimated at $200 million, which translates to approximately 112 billion FCFA.

The signing ceremony was overseen by Professor Fuh Calistus Gentry, the Interim Minister of Mines, Industry and Technological Development, underscoring the national importance of these ventures. The four blocks encompassed by these agreements are situated within the maritime zone of the Douala/Kribi-Campo basin, collectively covering an expansive area of 10,578.13 square kilometers. This strategic location is known for its potential hydrocarbon reserves, making these agreements crucial for Cameroon's energy future.

Under the terms of these SNH production sharing contracts, Murphy Oil Cameroon exploration activities are bound by a minimum work program. This program mandates research efforts to be conducted over a maximum period of seven years for each individual contract. The initial phase of this commitment spans three years and will primarily focus on the reprocessing of existing seismic data, alongside comprehensive geological and geophysical studies to better understand the subsurface.

Following the initial three-year period, the agreements include provisions for two optional renewal periods, each lasting two years. A key deliverable during these renewal phases is the drilling of at least one exploration well for each of the four contracted blocks. This structured approach ensures a systematic and thorough investigation of the hydrocarbon potential within the Etindé Tilapia Ntem Elombo blocks.

These recently signed SNH Murphy Oil Cameroon contracts are a direct implementation of Cameroon's updated legal framework governing the petroleum sector. Specifically, they align with Law No. 2019/008 of April 25, 2019, which established the new Cameroon Petroleum Code 2019. This demonstrates the practical application of the country's revised regulatory environment for oil and gas operations.

The adherence to the 2019 Petroleum Code provides a clear legal foundation for these extensive exploration and exploitation activities. It signals to the international energy community Cameroon's commitment to a modern and predictable regulatory landscape, which is essential for attracting and securing significant foreign investment in its vital hydrocarbon sector.

Lawyers advising energy sector clients in Cameroon should note these new production sharing contracts as they signify active investment and the practical application of the 2019 Petroleum Code, potentially impacting future regulatory interpretations or investment opportunities in the region.

Source: Original reporting via Actu Cameroun