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Americans to Hunt for Oil around Mt. Fako 

By Divine Ntaryike Jr

Cameroonpostline.com — Kosmos Energy Cameroon HC, an offspring of the U.S. Kosmos Energy Ltd has sealed off a deal with the Cameroon government to search for oil in the Fako Block.  The virgin patch covers 1,300 square kilometers, winding around the foot of Mt Cameroon in the southwest and stretching across to the Douala-Kribi-Campo and Rio del Rey basins. 

A production-sharing contract between both parties was ratified on January 12 in the capital Yaounde.  The binding agreement stipulates that the exploration will span a six-year period, split up in three sequences of two years each. 

During the first phase, Kosmos will undertake geoscience studies; gather gravity gradiometric as well as magnetic data.  It will also collect, process and interpret seismic data which entails the drilling of one exploration well during the first two years. The contract earmarks the drilling of at least two exploration wells.

 In simpler terms, the U.S. company will conduct scientific surveys on the reserve’s potential, garnering information and decode it to search for oil believed to be lying fallow in the block.

The project will gulp an estimated 17,56 million USD (9 billion FCFA). Kosmos Energy Cameroon HC officials are confident the hunt will pay off at term.  “We have a big reservoir of experience on oil and gas along the coast of West Africa.  All along, all our efforts have been onshore, but we believe Cameroon is a good place to invest in,” Christopher Stone, Deputy President and Kosmos Cameroon Country Manager told reporters.

The parent company has over the years focalized efforts in West Africa and South America.  Among its exploits is the 2007 discovery of the Jubilee oil field in Ghana, which has been steadily pumping “black gold” for two years running.

Experts in the Ministry of Mines, Industries and Technological Development were part of negotiations that culminated in the inking of the deal.  They are hoping that the Kosmos exploration will also unearth a similar find for the country.

Cameroon is one Africa’s oldest oil producers.  But since several years, production has been steadily sliding down.  Oil harvests currently dangle around 65,000 barrels per day, far below the 185,000 when production soared to a peak in 1985. 

According to the National Hydrocarbons Corporation, production presently stands at 21,700 million barrels annually, for a contribution of over 1 billion USD [about 540 billion FCFA] to the state coffers.

The exploration agreement between the Cameroon government and Kosmos Energy is the seventeenth signed within the scope of the application of a 1999 law inscribed in the country’s petroleum code.

 

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