SNH Murphy Oil Production Sharing: Cameroon Signs 4 New Contracts

• Société nationale des hydrocarbures (SNH) and Murphy Oil Corporation signed four production sharing contracts on November 11, 2026.
• These agreements cover hydrocarbon exploration and exploitation in the Etindé, Tilapia, Ntem, and Elombo blocks within Cameroon's offshore Douala/Kribi-Campo basin.
• The contracts involve a financial commitment of 112 billion FCFA for a work program spanning a maximum of seven years.
• Murphy Oil will initially hold a 100% participation and conduct seismic data processing and geological studies in the first three years, followed by drilling one exploration well per contract in the subsequent four years.
• The agreements aim to boost Cameroon's energy sector investment and hydrocarbon potential.

The signing of these SNH Murphy Oil production sharing Cameroon agreements represents a crucial step in enhancing the nation's energy security and attracting further Cameroon energy sector investment.

On November 11, 2026, a significant development for Cameroon's energy sector unfolded with the formalization of four new production sharing contracts. These agreements, signed between the state-owned Société nationale des hydrocarbures (SNH) and the American independent energy firm Murphy Oil Corporation, are set to drive hydrocarbon exploration and exploitation efforts in the nation's offshore territories. The ceremony, marking these pivotal SNH Murphy Oil production sharing Cameroon agreements, was overseen by Fuh Calistus Gentry, the Interim Minister of Mines, Industry and Technological Development.

These newly established contracts specifically target four key blocks situated within the maritime zone of the Douala/Kribi-Campo basin. The focus on this prolific offshore region underscores Cameroon's strategic intent to bolster its domestic oil and gas production capabilities. The partnership with Murphy Oil Corporation, a recognized player in global exploration and production, signals a renewed push for discovering and developing new energy reserves.

The four production sharing contracts encompass the Etindé, Tilapia, Ntem, and Elombo blocks, collectively covering a substantial area of 10,578.13 square kilometers, which translates to approximately 2.6 million acres. This extensive coverage highlights the scale of the planned exploration activities. A considerable financial commitment of 112 billion FCFA has been allocated for the comprehensive work program outlined across all operational periods of these agreements.

Murphy Oil Corporation, an independent American entity specializing in oil and natural gas exploration and production, will initially hold a 100% participation stake in the execution of these contracts. This significant upfront commitment by Murphy Oil underscores the potential they see in these specific Cameroon oil gas exploration contracts and the broader Douala Kribi-Campo basin agreements. The investment is poised to inject substantial capital and expertise into the region's energy landscape.

Under the terms of these production sharing agreements, Murphy Oil has committed to undertaking a minimum exploration work program designed to span a maximum duration of seven years. The initial phase of this program, projected to last for the first three years, will be dedicated to intensive preparatory work. This includes the meticulous processing of available seismic data and the execution of detailed geological and geophysical studies to better understand the subsurface potential of the Etindé Tilapia Ntem Elombo blocks.

Following this foundational three-year period, the contracts stipulate subsequent operational phases. These will consist of two distinct periods, each lasting two years. During these four years, Murphy Oil is obligated to drill at least one exploration well for each of the four signed contracts. This phased approach ensures a systematic and thorough evaluation of the hydrocarbon prospects within these critical offshore areas, aiming to de-risk future development decisions.

The signing of these SNH Murphy Oil production sharing Cameroon agreements represents a crucial step in enhancing the nation's energy security and attracting further Cameroon energy sector investment. For legal professionals advising clients in this domain, these new contracts signify not only increased exploration activity but also potential for future regulatory developments and the necessity of robust environmental compliance frameworks. The commitment of 112 billion FCFA highlights the significant economic impact anticipated from these Douala Kribi-Campo basin agreements.

The involvement of an international player like Murphy Oil Corporation in these "Cameroon oil gas exploration contracts" could catalyze further interest and investment in the country's hydrocarbon potential. Lawyers should closely monitor the progress of these Etindé Tilapia Ntem Elombo blocks as they could lead to new opportunities or, conversely, give rise to complex legal and operational challenges related to resource management, local content requirements, and international energy law. This initiative is a clear indicator of Cameroon's ongoing efforts to leverage its natural resources for economic growth.

Lawyers advising clients in Cameroon's energy sector should note these new production sharing contracts as they signify increased exploration activity and potential for future regulatory developments, environmental compliance obligations, and investment opportunities or disputes related to these specific offshore blocks.

Source: Original reporting via African energy news outlets