HYDROCARBON SECTOR IN CAMEROON EXPLORATION OPPORTUNITIES IN CAMEROON

HYDROCARBON SECTOR IN CAMEROON EXPLORATION OPPORTUNITIES IN CAMEROON BY Dr. Serge Edouard ANGOUA BIOUELE New Ventures Manager 1

CHALLENGES n Maintain good production level from existing fields while reducing costs n Intensify the search for other production opportunities in existing Concessions n Attract investments in Exploration 2

PRESENTATION OUTLINE n n n n GENERAL INFORMATION ABOUT CAMEROON THE MAIN ACTORS IN E&P SECTOR SNH ORGANIZATION LEGAL AND REGULATORY FRAMEWORK PRESENTATION OF THE CAMEROON MINING DOMAIN PARTNERS IN EXPLORATION & PRODUCTION FREE BLOCKS EXPLORATION ASSETS CONCLUSIONS 3

GENERAL INFORMATION ABOUT CAMEROON Situation: Central Africa; n Borders shared with: Chad, Nigeria, Gabon, Republic of Central Africa, Congo, Equatorial Guinea; n Population: 16. 7 millions (2001); n Surface area: 475, 442 km 2; n Average annual demographic growth rate: 2. 2%; n GDP: 18. 3 billion US$; n GDP/Resident: 1, 095 US$; n Average annual GDP growth rate: 3. 9%; n Inflation rate: 3. 6%; n Currency: CFA FRANC 1 EURO = 656 FCFA n Source : World Bank (2007) 4

THE MAIN ACTORS IN THE CAMEROON E&P SECTOR THE PRESIDENCY OF THE REPUBLIC SECRETARIAT GENERAL OF THE PRESIDENCY THE PRIME MINISTER’S OFFICE MINISTRY IN CHARGE OF FINANCE MINISTRY IN CHARGE OF MINES SNH MINISTRY IN CHARGE OF COMMERCE MINISTRY IN CHARGE OF ENVIRONMENT 5

SNH ORGANIZATION n n n Creation : 12 march 1980 Nature : Para-Statal Company with an industrial and commercial status Missions : n n n Promote, valorise and follow up all petroleum activities in Cameroon ; Manage State’s interests in the domain of hydrocarbons ; Commercialise the share of the national oil production accruing to the state; Manage and conserve E&P data generated in the country. Manpower: 294 Employees all Cameroonians 6

LEGAL AND REGULATORY FRAMEWORK The New Petroleum Code Promulgated into Law N° 99/013 of December 22, 1999 The New Gas Code Promulgated into Law N° 2002/013 of December 30, 2002 7

THE NEW PETROLEUM CODE n A Petroleum Contract replaces the former Convention o Establishment and Contract of Association; n The Petroleum Code and its enabling Texts are exhaustive and address all legal and regulatory matters relating to the Conduct of Petroleum Operations in Cameroon; n Clear identification of the Nature of the Contract (Concession or PSC); n Negotiable or biddable issues are well identified; n Clear separation between The State as the Regulatory Body and the State Body party to a Petroleum Contract n Issues related to Environmental Protection, Decommissioning and Sites Restauration are addressed 8

THE NEW PETROLEUM CODE: INCENTIVES n Reduced Income Tax rate from 57. 5% to a negotiable value between 38. 5% and 50%. n Tax Exemption on Profits and Dividends n Special conditions for exploring frontier acreages (Special Petroleum Operations Zones) 9

THE GAS CODE Guarantees safety of facilities and environmental protection; n Provide incentive for downstream gas projects: n n Tax write-off for up to ten (10) years; n Guaranteed convertibility of currency; n No government subsidies; n Off-and on-shore US dollars accounts; n Freedom to transfer funds; n Exemption of custom duties for imported project 10 goods/equipment.

Logone Birni Basin 27 000 km² Rio del Rey Basin 7000 km² Douala/Kribi. Campo Basin 19 000 km² CVL CAMEROON MINING DOMAIN MAP 11

MAMFE BASIN ( 2 400 km²) MANYU BLOCK (1115 km²) 12

PARTNERS IN EXPLORATION/PRODUCTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Total E&P Cameroun Pecten Cameroon Co Perenco Cameroon Perenco Oil & Gas Mobil Producing Cam. Noble Energy Petronas Carigali Eur. Oil Limited Vitol E&P Limited Sterling Cameroon Ltd 11. 12. 13. 14. 15. 16. 17. 18. 19. Addax Petroleum Cam. Pronodar Limited Kosmos Energy Rodeo Resources RMS Production Corpor. Glencore Explo. Cam. Ltd Afex Global Limited Yan Chang Logone Development Holding Co SINOPEC International Petroleum Exploration and Production Corporation 13

FREE EXPLORATION ASSETS n MANYU BLOCK (≈ 1 115 km²) The Manyu Block represents the prospective area of the Mamfe sedimentary Basin located in the South-West Province of Cameroon, between 5° 36’ and 5° 59’ of Latitude North and 8° 50’ and 9° 35’ of Longitude East. The petrography of the Mamfe Basin includes conglomerates, sandstones, siltstones, claystones and shales. In addition to these sedimentary rocks, crystalline rocks such as basalts, diorites, granites and porphyraceous granites are present within the basin Manyu block (1115 km²) Geological Map of the Mamfe Basin : MANYU Block location 14

MAMFE BASIN : ELEMENTS OF THE PETROLEUM SYSTEM n Source Rocks: n Include excellent lacustrine black shales with type I to type IV kerogen and TOC ranged from 0. 12 to 7. 23%), n Oil window (0. 5%<Ro<1%) is situated between 3000 m to actual surface. n Sealing Rocks: n Are represented by lacustrine and over bank shales and claystones. 15

MAMFE BASIN : ELEMENTS OF THE PETROLEUM SYSTEM (NEXT) n n Reservoir rocks: n Are mainly made of Lower Cretaceous arkosic sandstones (Thin section Ф=30 -40%), n Longitudinal and transverse bars, isolated or multistoried lenses and channels. Traps: n Stratigraphic traps (abandoned channels and pinchouts), and , n Structural traps (post-rift folds, syn- and post-rift faults). 16

MAMFE BASIN : ELEMENTS OF THE PETROLEUM SYSTEM (END) Hydrocarbons Generation and Migration n Occurred during Santonian and Early Tertiary. n Source Rocks located at the centre of the basin. n Shallow reservoirs appear at the E due to uplifting and erosion, suggesting HCs migration to the surface and/or HCs destruction by meteoric waters. n Deep reservoirs are elsewhere across the basin. n Geological Model (Dynamic Rift) suggests that HCs can still be trapped within deep structures. 17

CONCLUSIONS n Manyu Block is a large underexplored area n Good prospectivity highlighted by multiple studies realised on this block actually being promoted 18

THANK YOU ! 19