Petroleum Contracts offered Under the Legislation of the Republic of Cameroon

Concessions:

These are granted for hydrocarbon mining titles consisting of exploration permits and, where applicable, exploitation concessions. They must be entered into before the grant of a hydrocarbon exploration permit. Production sharing contract: In a production sharing contract, the Government seeks the services of a holder to carry out exploration within a certain area on its behalf exclusively, and to carry out exploitation in the event of a discovery of a commercially exploitable hydrocarbon field. The holder is responsible for the financing of petroleum operations. Risk service contract: A risk service contract confers exclusive hydrocarbon exploration and exploitation rights within a specified area on a qualified person, who assumes all the financial risk. The authorization is usually granted after a tender offering petroleum blocks for a competitive bid. In some cases, the State may directly award blocks without a tender process. There is no statutory timeline within which the State must grant applications for petroleum exploration and exploitation authorizations. In practice, the process usually takes about six months if the application file is properly deposited.