Cameroon is poised in resolving operations insecurity that
led to suspension of exploration activities onshore Logorne Birne basin. Chinese operator, YanChang Petroleum has suspended their exploration activities in the wake of deepening civil insecurity. YanChang, the operators of the Zina and Makary blocks, suspended its operations just after drilling the Zina-1X well on the Zina block on 2011,which encountered 18-metre thick reservoir sand stones with traces of hydrocarbons. Jeam Jacque Koum, head of exploration at Cameroon’s oil parastatal SNH, made this in cape Town South Africa during Africa Oil Week conference.
“We discovered oil but don’t know how much. The
company drilled and planned another on the Makary block without getting an understanding of the play,” Jeam Jacque said.
Koum, hinted on the fact of resolving the civil unrest that
previously enveloped the Logorne Birne Basin said that
working committee meetings had resumed and that he
hoped exploration activities would soon recommence. “It is true that Zina has been under force majeure but Makary has not”, while the overall the situation is now a little calmer” he said. Koum also informed the Africa Oil Week conference in Cape Town that the new Petroleum Code,passed in April this year, aimed to spur a resurgence of exploration, which has declined in recent years.
“We must raise the bar, encourage risk and we hope the
new regime will offer more flexibility to companies coming in to explore our deep water and mature basins.”
Moreover, corporate tax has been reduced from 50% and
40% on petroleum contracts to just 35%, alongside a five
to seven year tax holiday. Companies may now recover
specified seismic costs and dry hole expenses, he added.
“We do not as yet have a dedicated law imposing local
content, but we do adjust projects to ensure they
encourage local business and do not hamper the localeconomy,” said Koum.