The long-waited Cameroonian Petroleum Code (Law No. 2019/008) was enacted on April 25, 2019.
Significantly wider in scope than its 1999 predecessor, the new Code triggers a comprehensive revamping of the previous statutory regime. However, some of the principles and standards defined therein require further elaboration in future regulations.
Matters such as the simplification of the tax, customs, and foreign exchange regimes; the special incentives for certain zones; the introduction of risk service contracts; signature and production bonuses; the possible reduction (and at least in theory the elimination) of State participating interests; transfers and changes of control; local content requirements; control and disclosure of data; the joint operation of blocks covered by separate contracts; the permission for special stabilization regimes; and possible offences and penalties are all addressed in and governed by the Petroleum Code.
This law shall apply to the petroleum contracts entered into from the date of its promulgation. Holders of existing petroleum contracts, establishment agreements, and partnership contracts are allowed to renegotiate them to improve their economic balance.
Should you wish to receive a copy of the 2019 Petroleum Code and/or more information on its most relevant features, please reach out to us at the address below and we will be glad to assist.