Cameroon has opened bidding for nine oil and gas blocks across two proven sedimentary basins, as the National Hydrocarbons Corporation (SNH) moves to reverse a multi-year decline in upstream investment and secure the country’s long-term energy sovereignty.
The 2025-26 licensing round, which accepts formal proposals through March 30, 2026, encompasses three blocks in the Rio del Rey basin and six in the Douala/Kribi-Campo basin, all featuring prior drilling and extensive seismic data. By offering a range of contractual models, including production sharing and concession agreements, the government aims to attract a mix of independent operators and global majors to bridge a fiscal gap as oil revenues are projected to fall by 12.2% this year.
The tender comes at a critical juncture for Cameroon’s public finances, where hydrocarbons traditionally account for roughly half of total exports but have recently seen their contribution to the national budget shrink to less than 10%. According to data from the Ministry of Finance, royalties and corporate taxes from the sector are expected to drop to approximately CFA563 billion in 2026, driven by maturing fields and a 29% contraction in capital expenditure recorded in 2023. This licensing round serves as the primary mechanism for the SNH to stabilize production, which is forecasted to rebound to 20.8 million barrels in 2026 if new drilling programs and field optimizations are successfully executed.
Technical de-risking remains the central value proposition for the available acreage. The Rio del Rey blocks, Ndian River, Bolongo Exploration, and Bakassi, are situated in shallow waters near existing infrastructure, offering lower entry barriers for smaller African operators. Conversely, the Douala/Kribi-Campo blocks, including Ntem and Elombo, offer deeper prospects and significant natural gas potential. This gas-heavy focus aligns with Cameroon’s broader industrial strategy, which includes the development of the CFA350 billion CSTAR refinery in Kribi and the expansion of gas-to-power projects to address chronic electricity shortages that currently constrain the country’s manufacturing sector.
The fiscal framework governing the round has been designed to maintain competitiveness within the Central African region. While standard terms include initial exploration periods of three to five years, the SNH has signaled a willingness to negotiate “profit-oil” shares and royalties under exceptional circumstances.
According to the African Energy Chamber, this flexibility is essential for attracting the capital necessary to explore frontier areas such as the Ntem block. Furthermore, the 2026 Finance Law has introduced targeted tax reliefs for asset disposals, providing a more favorable environment for the farm-ins and corporate restructuring often required to fund high-cost offshore exploration.
Beyond immediate revenue generation, the licensing round carries significant implications for regional energy integration. On February 3, 2026, Cameroon and Equatorial Guinea signed a unitization agreement for the Yoyo-Yolanda transboundary gas field, a move that underscores the shift toward shared infrastructure and cross-border processing.
For Cameroon, the successful award of the current blocks could provide the necessary feedstock for these regional projects, positioning the Kribi industrial zone as a hub for liquefied natural gas (LNG) exports and domestic fertilizer production.
The governance of these assets will also be scrutinized under the 2020-2030 National Development Strategy, which mandates stricter local content requirements and environmental social governance (ESG) standards. Bidders are required to submit detailed plans for technology transfer and the prioritization of Cameroonian service providers, reflecting an institutional shift toward ensuring that extractive wealth translates into broader economic participation. This focus on “energy sovereignty” is not merely rhetorical; it is a response to the practical need to reduce the national import bill for refined petroleum products, which continues to strain the country’s current account.
As the March deadline approaches, the focus moves to the high-level investment forums in Paris and Cape Town, where the SNH is expected to finalize technical discussions with prospective partners. The outcome of this round will likely determine Cameroon’s ability to sustain its extractive industries as a viable engine for growth through the end of the decade, balancing the immediate need for fiscal stability with the long-term objective of industrial diversification.
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