Cameroon wants Chad oil contract renegotiated

YAOUNDE, Sunday

Cameroon wants a new contract with Chad over transportation of oil.

Since October 3, 2003 when Chadian crude oil started transiting through Cameroon, the government has earned a total of $171 million (Sh14,877bn) by way of charges to the Cameroon Oil Transportation Company (COTCO).

During that period, 417 million barrels of Chadian crude oil has been transported through Cameroon by COTCO for the consortium of petroleum companies exploiting Chadian crude namely Exxon-Mobil, Petronas and Chevron-Texaco.

However, very reliable sources with knowledge of the financial operations of the petroleum exploitation companies in Chad, have revealed that three years after the oil started flowing in 2006, the companies had already recovered all the money they invested on the project totaling about $4.6 billion.

Though the Cameroon government has never informed the public as to the modalities and basis on which payments for the transportation of Chadian oil through Cameroonian territory are calculated, sources say government now wants a renegotiation of the transportation contract with COTCO.