Cameroon has formally re-entered the upstream investment spotlight with a 2025–2026 licensing round offering nine exploration and production blocks across the Rio del Rey and Douala/Kribi-Campo basins, two of Central Africa’s most mature hydrocarbon provinces. The nine blocks come with extensive legacy datasets, including 2D and 3D seismic coverage, prior drilling records, and mapped leads with undrilled prospects. This helps reduce subsurface uncertainty and shortens the cycle from exploration to potential development.
Block Portfolio
The round covers nine exploration blocks spread across two well-characterised basins. Several carry prior drilling history and are supported by existing 2D and 3D seismic datasets.
? The Rio del Rey basin
The Rio del Rey basin, located in the southwest of Cameroon near the Nigerian border, is the more mature of the two provinces. It has a long history of shallow-water and onshore production, with operators including Perenco historically active in the area. Proximity to existing regional infrastructure and geological continuity with the Niger Delta petroleum system makes the three blocks here particularly attractive for companies seeking to optimise tie-back economics or leverage regional operational footprints. The three blocks in this basin include:
- Ndian River
- Bolongo Exploration
- Bakassi
? The Douala/Kribi-Campo basin
The Douala/Kribi-Campo basin stretches across a wider coastal and near-offshore area, with a more varied risk-reward profile. The six blocks in this basin include:
- Etinde Exploration (has seen prior gas-condensate appraisal activity)
- Bomono
- Nkombe-Nsepe
- Tilapia
- Elombo
- Ntem
Fiscal and contractual framework
One of the most commercially significant aspects of this round is the range of contractual structures on offer. Rather than prescribing a single framework, SNH is allowing bidders to negotiate across three distinct models:
? Concession agreement: Operator retains title to production subject to royalties and taxes. Preferred by majors seeking balance sheet control.
? Production sharing contract: State takes a share of production after cost recovery. Standard model across most of Sub-Saharan Africa.
? Risk service contract: Contractor receives a fee per barrel rather than equity in production. Common in Latin America; growing in Africa
Process timeline and data access
? February 2026: Round officially launched by SNH. Data rooms (physical and/or virtual) opened by SNH
? March 30, 2026: Bid submission deadline. Technical evaluations, work programmes, budgets, and local content plans due.
? Late April 2026: Final block awards expected. Negotiation of fiscal terms and contract execution to follow.
Bottom Line
For upstream investors, the takeaway is straightforward. Cameroon is offering a portfolio that blends geological confidence with commercial flexibility, underpinned by existing infrastructure and accessible data. In a global upstream landscape where risk-adjusted returns are under intense scrutiny, this kind of offering stands out, as a calculated, near-term value play in one of Central Africa’s most established hydrocarbon provinces.