1. NOT AN OFFICIAL UNCTAD RECORD

2. OUTLINE Overview of the Petroleum sector in Cameroon –Situation of Cameroon –Current actors –Some statistics: Exploration and Production Situation of the Energy Sector in Cameroon Cameroon’s Natural Gas Sector Overview –Natural gas resource base –Institutional framework –Natural Gas Master Plan Gas Development Opportunities –Local markets –Subregional markets Conclusion

3. SITUATION OF CAMEROON IN AFRICA Cameroon is situated in the arm-pit of Africa in the Central African Region Population of about 16 million people. Surface area of 475000sq.km Modest oil producer: 95000bls/day No major discovery as yet

6. EXPLORATION EXPENDITURES 1997-2005

7. PRODUCTION STATISTICS 1977-2008

8. SITUATION OF THE ENERGY SECTOR IN CAMEROON Population: 16 million people. Economic growth: 5% Population growth: 3% Per capital income: 700 USD Inflation index: 3% Location Map

9. SITUATION OF THE ENERGY SECTOR IN CAMEROON Access to conventional energy: less than 10 % of Population Main fuels used: Wood & Kerosene (cheapness, affordability and accessibility) 675 000 tonnes/year of wood consummed Electricity: 90% Hydro and 10% thermal Present demand: 500 MW Expected to double within 10 years

10. EVOLUTION OF THE DEMAND AND SUPPLY OF ELECTRICITY

11. SITUATION OF THE ENERGY SECTOR IN CAMEROON Government Policy today : Diversify energy sources to meet the growth rate Priority is focused on gas Clean energy source Existence of enough reserves to satisfy local market Protection of environment Halt deforestation

12. RESOURCE BASE INSTITUTIONAL FRAMEWORK -THE PETROLEUM CODE -THE GAS CODE THE NATIONAL GAS PLAN GAS DEVELOPMENT OPPORTUNITIES NATURAL GAS SECTOR OVERVIEW

13. RESOURCE BASE Cameroon is underexplored in terms of natural gas Total discovered recoverable Non-Associated natural Gas : 5.5 TCF Risked upside estimated volumes : 20 TCF Current discovered gas by accident from oil exploration Discovered gas rich in heavy components and located close to main energy centers in Douala and Limbe

14. RESOURCE BASE Reserves are substantial for local market but not sufficient enough for classical export schemes Privatisation of the electricity sector and the present economic growth have warranted the promotion of gas-to- electricity projects The emergence of subregional markets is an incentive to development of natural gas projects

15. INSTITUTIONAL FRAMEWORK Prior to the promulgation of the Petroleum Code in December 1999, no legal framework for Gas Development The Petroleum Code regulates the Upstream sector and provides incentives for gas exploration and development

16. INCENTIVES Possibility of extension of the exploration period for appraisal of the gas discoveries and the search for market outlets Tax holidays for cost recovery for development and exploitation of natural Gas No custom duties for gas development and exploitation activities Possibility to negociate economically viable terms for Gas development projects

17. THE GAS CODE Promulgated to Law on December 30, 2002 Enabling Act published on September 4, 2003 Regulates the Downstream sector for gas development projects Legal framework condusive to the development of Gas resources

18. THE GAS CODE Sets an attractive environment for Private National and Foreign investors in the Gas sector Lays down principles governing regulation of the sector Guarantee safety of facilities and environmental protection

19. Gas Regulator To enforce the provisions of the Gas Code and its enabling acts; To ensure the protection of the rights of customers; To manage the selection process for concessions, licences and authorizations; To ensure application of norms, security and environment protection; To monitor compliance with competition and play the role of alternative dispute resolution authority. THE GAS CODE

20. Incentives Tax write-off for ten (10) years Guaranteed convertibility of currency No Government subsidies Off-and on-shore US dollars accounts Freedom to transfer funds Exemption of custom duties for imported project goods/equipment. THE GAS CODE

21. Define an optimum natural gas development from all known reserves both Associated and Non-Associated Centralise coordination of natural Gas development Get maximum economic benefits through a prudent step by step approach to gas development Define a long term national gas development strategy THE NATIONAL GAS PLAN THE NATIONAL GAS PLAN Objectives

22. HUB Usine de GNL Onshore Jabane/Ifiari (144) 144 Afaga (128) 151 131 76 20 314 Narendi/Idaboto (131) Edem (32) Kita (114 Kita Gas 314 Design) Ekundu Nth (56) Ekundu Sth (20) Sanaga Sud (234 Sanaga Sud Gas 260 Design) Kribi L (88) Kribi B (76) Ile de Bioko Plate-formes puits Plate-formes production Débit de gaz en MMSPC/J Gaz sec - SONARA - Centrale thermique de Limbé GPL (50 000 t/an) Condensats (3 000 bbb/j) 164 76 260 360 40 Centrale thermique de Kribi Possible configuration of Gas development infrastructure from known resource base Creation of gas gathering system

23. Gas Development opportunities  Gas-to-electricity Kribi gas to electricity plant to go operational by the end of 2007 Capacity of 150 MW and expected to grow to 300 MW PSC on Sanaga Sud field signed in March 2006 with Perenco Cameroon Gas sales contract to be signed in June 2006 with AES SONEL

24. Gas Development opportunities  Conversion of Limbe Power Plant and SONARA refinery to function with natural gas. HUB Gaz sec - SONARA - Centrale thermique de Limbé GPL (50 000 t/an) Condensats (3 000 bbb/j)

25. Gas Development opportunities  Extraction of LPG for local and subregional markets  Production of 50 000 tons/year envisaged  Feasibility study on 4 000 m 3 storage capacity at Douala is ongoing HUB Gaz sec - SONARA - Centrale thermique de Limbé GPL (50 000 t/an) Condensats (3 000 bbb/j)

26. Gas Development opportunities Valorisation of liquids extracted from wet gas is envisaged: about 3 000 barils/day contemplated HUB Gaz sec - SONARA - Centrale thermique de Limbé GPL (50 000 t/an) Condensats (3 000 bbb/j)

27. Gas Export scheme to LNG in Equatorial Guinea Protocol Agreement signed between SNH and SONAGAS on March 20, 2006 to study the implementation of the project The terms of the agreement provide for: Joint study on the Technical, Economical and Legal aspects of the export project Creation of a Steering Committee and Study groups Study period: 15 weeks Conclusion to be submitted to both Governments for ratification

28. Gas Export scheme to LNG in Equatorial Guinea OBJECTIVES To determine volumes of Cameroon natural gas necessary to meet the needs of the LNG plant in Equatorial Guinea To determine gas requirements of the LNG plant in Equatorial Guinea To examine the Legislative and Regulatory framework applicable for construction of a pipeline for gas transport from Cameroon to Equatorial Guinea To identify financing sources

29. CONCLUSION Gas is no more a stranded asset in Cameroon Natural Gas exploration and development is now a reality especially considering the underexplored status of its basins The new institutional framework has asserted the governments proactiveness to create the conditions for gas development International cooperation among countries sharing common boundaries is a major incentive on gas development projects