AfricaNews

AEC: Guinea-Cameroon Cross-border oil & gas Dev’t Deal Signals New Era for Africa

A bilateral cooperation agreement signed between Equatorial Guinea and Cameroon would unlock a new phase of energy security and cross-border collaboration for Africa, says African Energy Chamber (AEC) today.

Guinea president Teodoro Mbasogo, and Cameroon President Paul Biya signed the deal at the heads of state summit of the Economic and Monetary Community of Central Africa (CEMAC) countries held in Cameroon last week.

The deal would see the two West African countries cooperate on cross-border oil and gas development and monetization.

It is also expected to bring new opportunities for oilfield development and regional energy security in the continent, the voice of the African energy sector AEC says, signaling its support for the signing of the bilateral treaty.

The agreement paves the way for the joint development and monetization of cross-border hydrocarbon fields, and more specifically, the Chevron-operated Yoyo in Cameroon and Yolanda in Equatorial Guinea oil and gas fields located along their maritime borders.

Following Chevron’s acquisition of Noble Energy in 2020, the energy major is said to have committed to developing the promising fields, seeking to acquire a gas-sharing agreement for the Yoyo and Yolanda discoveries with the aim of fast-tracking resource development.

NJ Ayuk, the Executive Chairman of the AEC, commended the two countries move to unite on oil and gas resource development and exploitation, adding:

“We believe that cooperation among African countries is key for driving the development and monetization of hydrocarbon resources to address looming energy access and affordability issues across the continent.

“We are confident that cooperation between Cameroon and Equatorial Guinea will unlock long-term economic benefits for the entire region.”

The bilateral agreement also aims to support the launching of various other fields.

Notably, the development of Cameroon’s Etinde gas field – operated by New Age – and Equatorial Guinea’s Camen and Diega fields are also set to be incorporated in the treaty, thereby maximizing the implementation of the Gas Mega Hub – an Equatorial Guinea initiative which aims to optimize the development and monetization of stranded offshore gas reserves in regional basins.

The Governments of the two neighboring countries also urged to move fast, leveraging the treaty to fast-track field development, address fiscal challenges and bring new supplies to the regional market.

AEC says the treaty represents just the start, with several challenges including restrictive foreign exchange regulations implemented by the Bank of Central African States (BEAC) “that continue to deter foreign investment in need of addressing.”

“What we need to see now is consolidated efforts by all West African countries to address regulations that continue to deter investment, thereby putting in place enabling environments that trigger further growth across the energy sector,” Ayuk said.