(Business in Cameroon) - Cameroon is to capitalise on its strategic position in fuels from Niger that are to be transported by pipeline to oil fields in Chad.

A bill authorising the signing of an agreement to this effect between Niger and Cameroon was submitted a few days ago to parliament.

The implementation of this agreement will enable Cameroon “to take advantage of its strategic geographical location to promote sub-regional cooperation in hydrocarbons,” he explained. The closer relations between Yaoundé and Niamey will lead to “significant growth in revenue for both of our countries in transit fees,” maintained the Minister of Mining and Industry, Emmanuel Bonde, before members of parliament on Saturday.

This will be a virtual goldmine for Cameroon which recently increased its transit fees. With Chinese funding and China National Petroleum Corporation (CNPC), Niger has been an oil-producing country since 2011 . In the first quarter of 2013, its production reached 3 million barrels of crude oil on the Agadem block. For the same period, Société de Raffinage de Zinder (SORAZ) a Chinese and Nigerian capitalised company, refined 113,524 tonnes of gasoline, 217,222 tonnes of diesel and over 20,000 tonnes of domestic gas.