Murphy signs four oil contracts in Cameroon, $202m planned
By the AFREEQUE newsroom, based on Investir au Cameroun
US oil group Murphy Oil has signed four production-sharing contracts with the Cameroonian state for the Etinde Exploration, Tilapia, Elombo and Ntem blocks, covering 10,578 sq km. Planned investment reaches $202.4 million, with 99% conditional on drilling dependent on extensions of authorisations, according to a joint SNH-Murphy statement.
The four production-sharing contracts signed by Murphy Oil Corporation with the Cameroonian state cover the offshore Etinde Exploration, Tilapia, Elombo and Ntem blocks, which cover 10,578.13 sq km in the Douala/Kribi-Campo Basin. The exploration programme is valued at $202.4 million, according to the report on the negotiations presented by Claudine Manga, chair of the Permanent Commission for the Negotiation of Oil and Gas Contracts.
During the initial three-year exploration period, Murphy Cameroon Exploration & Production SASU will have to spend at least $600,000 per block on reprocessing seismic data and geoscientific studies, or $2.4 million for the four areas. This work must precede any potential drilling, according to Claudine Manga.
The contracts provide for two optional two-year extensions. With each renewal, Murphy commits to drilling one exploration well per block, at an estimated cost of $25 million per well. A first extension across the four blocks would therefore involve four wells and $100 million, while a second would bring the programme to eight wells and $200 million if exercised across all the areas.
