Cameroon to start consuming locally produced oil products
Cameroon should finally be able to consume its own oil, with CFA 45 billion loan that a local bank recently granted to the National Refinery Company (SONARA), an official source told APA on Monday.
Under the terms of the agreement, the first phase of the project aims at maximizing the use of crude oil produced in Cameroon and the products demanded by the Cameroonian and regional market, namely diesel and kerosene.
Eventually, the installation of new equipment should enable SONARA jump from an annual capacity of 2.1 million to 3.5 million tons of oil.
The heavy black gold of the country undergoes a discount compared to the reference price. Not having the appropriate technical platform, Cameroon sells its output abroad and has to import different types of crude oil for its own consumption.
With the signing of four research (offshore and onshore) and oil production sharing agreements last year with international firms, Cameroon reactivated the oil option in its development plans.
In December 1999, the country adopted a particularly attractive petroleum code which provides flexibility to get research permits.
It expects about CFA 407 billion oil revenue i.e. 3.7% contribution to the state budget this year.
Cameroon began oil exploration in 1947 through the French petroleum research office.
It became an oil producing country in 1977 by producing its first oil tonne in the Rio del Rey basin.
The peak production reached a record 186,000 barrels/day in 1985, before declining the following year.
In 2004, Cameroon’s oil production was 90,000 barrels/day and decreased to 85,000 barrels per day the following year.
Recently, the authorities are dreaming again about the oil windfall thanks to the handover by Nigeria of the Bakassi peninsula, considered rich in oil and fish products.
According to a 2003 World Bank study, “the oil in the marine border area between the two countries is of high quality, unlike the heavy oil sold by Cameroon with a great discount.”
Estimates made by this institution indicate that this area located in the Gulf of Guinea, an area of some 1,000 square kilometres, “contains 10% of the world oil and gas reserves and is a good fishing area.”
At local trade level, the government opted for “real fuel price” policy but this, which caused riots in February 2008 following drivers’ strike, is regularly decried by consumers and trade unions.
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This would be good news for the local consumers, only if price drops reasonably. It will also be a step forward for the country.
Good strategy ..hope it takes effect.
When I read this kind of news I feel like a Cameroonian again. SONARA, I love you.
That Government ( with the same people in power) Have complained about not being able to consume their petroleum for over 30 year now. I always wondered whether they were not responsible for managing their own oil exploitation; including purchasing equipments to refine the ready to consume type of gas the country needs. Maybe Mr BIYA needed to acquired the wisdom only when he his above 77 years of age! Meanwhile he wasted all his youth ages being so stupid.
Well, the strategy put in place is well commended; but proper management is mandatory if the masses are to feel a pinch of this development. And speaking of technical know hows, Cameroon has a wealth of technically sound personnel that can efficiently lead the development of that industry, but due to poor governance, corruption, intimidation and many other setbacks, this vital resource is draining to the west. In my opinion, I think it is high time the government put in place policies that will encourage and retain science students and engineers from seeking opportunities abroad.
Statics show that Cameroon has one of the highest literacy rates in sub-Sahara Africa but yet remains one of the most underdeveloped nation in the same region.
I suggest lawmakers and the executives review their strategies and invest more in technical education.
This is the type of news i always like to read.but no certainty yet.any way we should see what the goverment of very old mr paul biya will do.his friends are dieng he is seeing.so he should keep cameroon to a new face before he dies in 2011.hahahahahahahahaha it’s a jokooooooooooo
Since Cameroon was defeated in the African Cup of Nation,i read some thing which makes me feel i am a cameroonian and that we are moving towards progress.
it means for the pass years something went wrong with our oil supply.thank u biya just get this one right,but do not hope to use this issue to win 2011.
Don’t get TOO excited about the oil products because the Chad/Cameroon Pipeline is a BOONDOOGLE and making a lot of FAT CATS. It has been operating in a legal void since Oct 03 by virtue there are no oil spill plans or environmental protection plans in place.
The World Bank have run away from the project and the pipeline is best described as an ENVIRONMENTAL AND SAFETY TIMEBOMB BOONDOOGLE.
Each time we do glance on such pieces of writings we feel naturally happy as Cameroonians. What happens when expolitation starts is that no news comes out again as King Bimvondo and his lieutenants will be busy cornering. No one knows where the proceeds of Giovic’s activities in the East are going to omaybe we know already or the exploitation of things they have hidden from us in Mundemba and only carried away using Hylicopters. Let them know that history is looking at them and ready to pen down. “Bloody occultics”
Let’s wait and see. I reserve my accolades for the time being. Hope it’s going to profit the layman on the street.
That is good news indeed. I wish that the government should do more so that we can recall that God has not forsaken us.May the bad grains become God fearing so that the money can take the right destination.However, I will like to know how long this will take
That’s true Mamfe fine pass Cameroon. What makes the difference? if crocodiles eat their own eggs, what will they do with the eggs of a frog? SONARA booster or not, its will certainly not be of any significance to the Cameroonian on the street. They will get up one day to find out that all Cameroonian youths are in Asylum cams overseas. May guilt rest on their conciences. God safe us.
It’s wishful thinking to expect prices of finished petroleum products in Cameroon to drop with the refining of local heavy crude oil drilled in Cameroon. Just like in the UK, the government of Cameroon uses indirect taxes on refined petroleum products to generate revenue. Cameroonian consumers of finished petroleum products therefore pay way above the cost of refining and distribution at the pump since pump prices are dictated by the government in Yaounde through the Petroleum Prices Stabilization Fund. However, benefits will accrue from the foreign currency saved from importing high-grade light crude (like Bonny Light from Nigeria) and obtaining asphalt necessary for paving roads in the country.
Apart from the good news, the thing that pleased me the most was that the loan was granted by a local bank; meaning the profits accrued from it will be ploughed back into the local economy which would have been otherwise with an external donor!
Gradually we are seeing the light at the end of the town even though the water is still very murky and filled with predators of all sort of monstrosities!
What’s this local bank that has no name? Is this story fresh? It seems to me to be a rehashed version of a story I read some weeks ago somewhere else. That’s what is troubling.
me toooooo
can’t beleive this…..time will tell…
Dr A. A. .. this APA report is short on the facts of the event and comes way after it occurred in December 2009. The bank in question is Afriland First Bank (formerly CCEI). SONARA’s own cash in hand for this project is CFA 14 billion while further financing is expected from external funding agencies like the African Development Bank since the total project cost is about CFA 151 billion. Cameroonian banks which currently enjoy good liquidity, have been urged to provide lending to projects like this one.
It’s always good news if this can make more employments for maximum of our brothers in Cameroon.
Just organise everythings in all Cameroonians advantage. at the same time, make sure it’s important to get qualifications when you looking after job. GOD Bless Cameroon.
It’s always good news if this can make more employments for maximum of our brothers in Cameroon.
Just organise everything in all Cameroonians advantage. at the same time, make sure it’s important to get qualifications when you are looking after job. We are coming back very soon to help our country who have only to grow in a positive way…
GOD BLESS CAMEROON>
I have learnt not to look at a gift horse in the mouth. Another 7 year term election gimmick. Until this corrupt government gives way I will NEVER believe anything it does. Local fuel prices will not fall in real terms as a result so no hand claps here.
This sounds like good news. But without any time line it may end up like the Limbe sea port or the ring road. I will maintain a wait and see approach!
It’s wise to be cautious, as this is the time for electioneering.
It’s good to be cautious, as this is the time for electioneering.
This sounds like ” sweet wine ” but lacking subtance . Paul B is gambling with cameroonians , these are way to keep us blind while twisting the constitution .
Wait a minute !! I dont buy this idea of SONARA getting a loan from a local bank to upgrade . Its all election year-2011 politics and a big scam. SONARA has been operating for more than twenty years. Have they not been making profits from their operations to be able to upgrade without taking a loan ? What is the name of the local bank that gave SONARA the loan. When elections are close, the gov’t starts to release nonsense to the public, to show it is working hard for its people. What has SONARA been refining all these years. What foreign countries supply Cameroon with refined products for local use at the moment. SONARA has been refining the same products for many years. Dont be fooled about a loan from a local bank to SONARA. It is all politics to make fool of the man on the streets.
If Cameroon will start consuming her own locally produced fuel,the question is, since SONARA was established in the 80s what has she been refining? mud?
My company is looking for heavy oil exploration and production permits in Cameroon. Would like to speak to anyone who has contacts in Cameroon