logoBC
Yaoundé - 31 May 2020 -
Hydrocarbons

Cameroon: New oil code boosts investors’ rush into the oil sector (SNH)

Cameroon: New oil code boosts investors’ rush into the oil sector (SNH)
  • Comments   -   Monday, 02 December 2019 15:24

(Business in Cameroon) - We note a real interest on the part of international oil companies, whether already operating in Cameroon or not, to take advantage of the incentives provided by the oil code to increase investment or invest into oil exploration and production in Cameroon. Many law firms and professional organizations have also expressed their interest in promoting the new oil code (...),” says Jean-Jacques Koum (photo), Chairman of the Permanent Commission for Oil and Gas Contract Negotiations set up by the Société nationale des hydrocarbures (SNH), the national oil and gas company, in a recent publication.

According to the chairman, this enthusiasm is evident even though the framework is not yet fully in place. “The decree implementing the new law is eagerly awaited and should come into force shortly,” he says.

The new code, issued on April 25, 2019, is more attractive to investors because of the various incentives it provides, the official indicates. These incentives help mitigate the risks taken by investors and improve savings realized on their different projects. An example of such incentive is the tax cuts that should, according to Mr. Koum, reduce the risks investors face in this highly capital-intensive and risky sector.

From a fiscal point of view, Jean-Jacques Koum says, the new oil code contains a whole chapter devoted to the incentives Cameroon could grant to oil companies, to encourage them to take more risks, especially when the international oil market context is not favourable to investment, or when the field presents proven difficulties.

These incentives range from tax consolidation measures, tax exemption periods, lower tax rate of 35%, incentives for the acquisition of seismic data to an exemption from the payment of signature bonuses. The text also specifies that specific investment programmes aimed at increasing production such as tertiary recovery may also benefit from the incentives.

Sylvain Andzongo

the-wood-sector-requests-support-to-tackle-the-twin-shocks-of-falling-demand-and-covid-19
In Cameroon, the wood sector has not been spared by the coronavirus. According to Giorgio Giorgetti, the president of the Cameroonian loggers’ association...
inflation-the-ins-doubts-cameroon-will-meet-the-community-benchmark-due-to-the-covid-19
In its recent note on the change in the consumer prices in Cameroon, the National Institute of Statistics (INS) listed the factors that should influence...
anti-covid-19-drugs-and-tests-production-process-is-being-finalized-madeleine-tchuente-says
"The process of production of endogenous drugs, test kits, vaccines and other health equipment dedicated to the fight against Covid-19 is being...
cameroon-world-bank-grants-xaf44-bln-loan-to-empower-women
On May 28, 2020, World Bank Executive Directors approved a $376 million (over XAF221 billion) loan as the fourth additional financing for the...

Mags frontpage


Business in Cameroon n87: May 2020

Roads, dams, fiber optics, markets... Cameroon’s big projects toward integration


«Central Africa is facing enormous challenges» - AfDB


Investir au Cameroun n97 Mai 2020

Routes, barrages, fibre optique, marchés… Les grands chantiers camerounais de l’intégration


« L’Afrique centrale est confrontée à d’énormes défis » (BAD)