11 April 2008

Cameroon: Douala/Kribi-Campo Basin - Over 15.7 billion for Oil Exploration in Matanda

Twenty-six years after the drilling of five oil wells, two of which produced positive results in the Matanda block, government has decided to revisit the potentially oil/gas rich area located in the Douala/Kribi-Campo basin.

A Production Sharing Contract for oil exploration in the block was signed yesterday between the government, represented on the one hand by the Minister of Industries, Mines and Technological Development, Ndanga Ndinga Badel and the Executive General Manager of the National Hydrocarbons Corporation, Adolphe Moudiki and on the other, by the General Manager Exploration/Production of Glencore Exploration Limited, Alan Johnson and the General Manager of AFEX Global Limited, Richard Bray.

The contract, valued at 38 million dollars (about CFA 15.7 billion) will enable the consortium to carryout exploration activities on the block for the next three years. "The minimum work programme subscribed by Glencore/AFEX consortium for the first period provides for: the acquisition, processing and interpretation of 170 square kilometers of 3Dseismic data, 15 kilometers of 2D seismic data and the drilling of two wells", a press release issued at the end of the signing said. The contract, the release stated, will reactivate exploration activities on this part of the Cameroon mining domain which for over a decade registered no activity, but whose potential in gas was proven in two wells drilled by Gulf Oil Corporation in the early 80s.

According to the release, negotiations on the Matanda block were initiated following a restricted international call for tenders launched by SNH in March, 2007 and targeting 13 oil companies from which the present consortium was selected. Glencore Exploration Limited is a subsidiary of the Swiss based Glencore International AG. It was created in 1974 and is actively involved in oil and gas production in several countries in the world including Russia and Equatorial Guinea. AFEX Global Limited on its part is an independent company operating in Mali and Angola among others.

The Matanda block is located to the south and west of Douala town. It is in a transitional zone and covers the northern part of the Wouri River's estuary. The block covers an area of 1,187 square kilometres.

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