New Blocks On Offer But Will Interest Be Deep?
Cameroon is set to offer more hotly anticipated West African acreage to explorer s with a new onshore and offshore bidding round. The round will include both proven and frontier acreage with five block s from three areas for bid ding .
|Block Name||Area (sq km)||Basin||Onshore/Offshore||Coverage|
|Source: BMI, Deloitte|
|Lungahe||83||Rio del Rey||Shallow Waters||Existing 3D|
|Bomana||138||Rio del Rey||Shallow Waters||Existing 3D|
|Dissoni||120||Rio del Rey||Shallow Waters||Existing 3D|
|Kombe-Nsepe||3,078||Douala/Kribi Campo||Onshore||Existing 2D|
Blocks in the Rio del Rey basin are in proven petroleum basins with existing production, including the Kole/Bavo-Asoma production hub. This should help to d e-risk exploration in the area, while vintage 2D data and a number of already identified leads and discoveries on the Kombe-Nsepe block should support interest . Finally , the onshore Manyu block is a true frontier : the area is covered by forest and lack s existing exploration data.
Cameroon is keen to capture a slice of the action in West Africa's waters. New investment in exploration and production along the Atlantic transform margin has seen Ghana become an oil exporter, and has seen major s such as ExxonMobil move i nto frontier deepwater acreage offshore Liberia ( see our online service, March 12 2013, 'Where Do ExxonMobil's Troubles Leave Smaller Players' ). Yet, for Cameroon, geography will be a challenge, as it lacks access to the deepwater acreage where sub-salt prospects have attracted interest from Sierra Leone to Angola.
Although a number of projects in the pipeline will boost oil production in the near term, Cameroon's longer-term outlook is less optimistic, as we expect output to trend lower after the temporary boost from new fields fails to offset declines elsewhere. Therefore, new discoveries will be necessary if Cameroon is to stabilise or grow output.
|New Discoveries Needed To Keep Growth From Levelling Off|
|Cameroon Oil Production, Consumption & Net Exports, 2010-2022 ('000b/d)|