Perenco and Cameroon’s National Oil Company have a signed a new production sharing agreement for the Rio del Rey basin which will unlock a new era of energy security and economic growth for the west African country.
Independent Anglo-French oil and gas company Perenco has signed a new 20-year Production Sharing Contract with Cameroonian National Oil and Gas Company Société Nationale des Hydrocarbures (SNH) for the continued development of the Rio del Rey basin, offshore the West African country.
With an average production of 35,000 barrels of oil per day, Rio del Rey is a crucial oil field driving Cameroon’s energy security and monetization for gross domestic product growth agenda with the basin accounting for approximately 70% of the west African country’s total production.
Armel Simondin, CEO of Perenco Rio del Rey, said, “This new contract creates a solid foundation on which we will be able to build an ambitious program of modernizing our facilities, reducing emissions, exploring the area, seizing new opportunities, developing satellite projects and supporting the country in meeting its future energy challenges.”
With Cameroon seeking to ramp up the production, monetization and exploitation of its 4.8 trillion cubic feet of natural gas and 200 million barrels of crude oil reserves to boost energy access locally and across the region while supporting its economic expansion, the extension of the Production Sharing Contract for the Rio del Rey basin by Perenco and SNH is a game changer.
The African Energy Chamber (AEC), as the voice of the African energy sector, strongly commends and congratulates Perenco and SNH for reaching the milestone which will drive the country’s socioeconomic developments for decades to come. The Chamber is confident that the agreement will bring new investments needed to revitalize Cameroon’s upstream sector, employment creation and economic expansion on the back of optimal energy exploitation.
The Chamber believes that Cameroon’s target of improving consumer energy access from over 65% to reach universal access by 2035 will be practical with agreements such as Perenco and SNH’s.
“Perenco and SNH extending their production agreement in the Rio del Rey represents confidence in Cameroon’s Oil and Gas sector by a reputable international investor in a proven but under-explored oil basin. This is a big win for jobs, for industrialization and improving living conditions in Cameroon and fighting energy poverty”. states NJ Ayuk, the Executive Chairman of the AEC.
“For the past 45 years, the basin has shaped Cameroon’s energy market growth, GDP resilience and the country’s position on the global energy market. We believe the milestone will unlock the full potential of the basin in shaping global energy security, and just and inclusive energy transition for both Cameroon and Africa. We commend Perenco’s commitment in positioning itself as a reliable partner helping Cameroon and Africa address pressing energy issues by maximizing both mature and marginal hydrocarbon fields.” Concluded Ayuk.
At AEW 2022, Perenco shaped critical exploration and production dialogue as a sponsor, showcasing best practices to address upstream challenges and maximize opportunities for the continent to make energy poverty history by 2030 on the back of oil and gas resources.
AEW 2023, AEC’s annual event gathering African energy policymakers and companies with global investors to discuss the future of African energy, will be back bigger and better featuring high-level panel discussions, deal-signings and various forums aimed at driving the African Energy Renaissance, energy poverty eradication, environmental sustainability and private sector participation across the continent’s burgeoning energy sector. For more info about AEW 2023, visit https://aecweek.com/.