In late September, Bloomberg reported that Chad’s Finance Minister, Atteib Doutoum, announced the tripling of the country’s crude oil output — an increase to be achieved by 2015.
Chad has a long-standing oil exportation relationship with Cameroon and now, according to Reuters, through an agreement with COTCO — Chad-Cameroon pipeline manager — and the Cameroonian government, the transit fee paid to Cameroon will also triple.
A pipeline connected to Cameroon’s Kribi port is utilized to export oil from Chad. COTCO, largely the advisor of Cameroon’s pipeline share, is owned by ExxonMobil.
Between October 2003 and October 2011 more than 410 million barrels of oil were exported from Chad to Cameroon, Société Nationale des Hydrocarbures (SNH) — Cameroon’s national oil company — said in the Reuters report. Up from the projected 200,000 barrels per day (bpd) to be produced in 2014, Bloomberg noted that Chad is looking to produce 300,000 bpd by 2015.
Since Cameroon will now receive $1.30 per barrel exported, — .89 cents more than the previous transit fee — the 2014 and 2015 increases in barrel production will further affect Cameroon’s financial obligation regarding oil exports.
“This rate will be upgraded every five years based on the average rate of inflation provided by Central Africa’s regional central bank,” an SNH statement said, outlining changes to transit fees.
Reuters also reported that since Chad began exporting oil in 2003, Cameroon has grossed $168 million in transit fees alone. Finance minister Doutoum predicts that the country is close to reporting another oil boom. According to Bloomberg, oil accounts for 80 percent of the nation’s revenue.